AuRico Metals Closes Flow-Through Private Placement Financing
/NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR DISSEMINATION IN THE UNITED STATES/
TORONTO, June 29, 2017 /CNW/ - AuRico Metals Inc. (TSX: AMI) ("AuRico" or the "Company") is pleased to announce the closing of the private placement financing announced on June 6, 2017. Pursuant to the financing, AuRico has issued 3,401,361 flow-through common shares of the Company (the "Shares") at a price of C$1.47 per Share for gross proceeds of C$5,000,000 (the "Offering"). Red Cloud Klondike Strike Inc. and Laurentian Bank Securities Inc. co-led the syndicate of agents, which included Macquarie Capital Markets Canada Ltd. and Paradigm Capital Inc.
As part of the Offering, Alamos Gold Inc. exercised its participation right to maintain its proportionate ownership interest in the Company.
An amount equal to the gross proceeds of the Offering will be used by the Company to incur "Canadian exploration expenses" (as defined under the Income Tax Act (Canada)) at the Company's Kemess East Project located in British Columbia, Canada and will be renounced by the Company in favour of the purchasers of the Shares with an effective date of no later than December 31, 2017.
All of the securities sold pursuant to the Offering are subject to a four month hold period which will expire four months and one day from the date hereof.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.
About AuRico Metals
AuRico Metals is a mining development and royalty company with a 100% interest in the Kemess property in British Columbia, Canada. The Kemess property hosts the feasibility-stage Kemess Underground Gold-Copper Project, the Kemess East Project, and the infrastructure pertaining to the past producing Kemess South mine. AuRico's royalty portfolio includes a 1.5% NSR royalty on the Young-Davidson Gold Mine and a 2% NSR royalty on the Fosterville Gold Mine, as well as a portfolio of additional producing and pre-production royalty assets located in North America and Australia.
Cautionary Statement
This news release contains "forward-looking information" which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects, as well as the use of proceeds from the Offering. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances, management's estimates or opinions should change, except as required by securities legislation. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance and ability to generate cash flow.
SOURCE AuRico Metals
please visit the AuRico Metals website at www.auricometals.ca or contact: Chris Richter, President and Chief Executive Officer, AuRico Metals Inc., 416-216-2780, [email protected]; David Flahr, Vice President, Finance, AuRico Metals Inc., 416-216-2780, [email protected]
Share this article