Dr. Richard Sutcliffe reports
AURIGA GOLD ANNOUNCES $800,000 NON-BROKERED PRIVATE PLACEMENT
Auriga Gold Corp. has arranged a non-brokered private placement of up to 4,705,882 units of the company at a price of 17 cents per unit, for gross proceeds of up to $800,000. Each unit will consist of one common share of the company and one common share purchase warrant. Each warrant will entitle the holder to acquire one common share of the company at the exercise price of 25 cents per share for a period of 24 months from the closing date of the offering.
The company announces that it has closed an initial tranche of the offering and has issued 2,352,942 units. Common shares and warrants issued in the first tranche are subject to a hold period that expires on Nov. 11, 2012, and were subject to a cash commission plus agent warrants to purchase 235,294 common shares at a price of 17 cents for a period of 18 months. The warrants issued in the first tranche of the offering expire on July 11, 2014.
The offering remains subject to the final approval of the TSX Venture Exchange. The final tranche of the offering is expected to close before July 30, 2012.
The offering is eligible to be purchased by subscribers that are accredited investors or that qualify under another exemption from prospectus in the jurisdictions where the offering is sold. Any securities to be issued pursuant to the offering will be subject to a hold period of four months from the closing date, in accordance with the rules and policies of the TSX Venture Exchange and applicable Canadian securities laws, and such other further restrictions as may apply under foreign securities laws.
Proceeds of the offering will be used for the planned development of the company's Maverick gold project, Flin Flon, Man., as well as for general working capital.
We seek Safe Harbor.