TORONTO, Jan. 24, 2017 /CNW/ - Aquila Resources Inc. (TSX: AQA) ("Aquila"), announced today that it plans to raise up to $6.6 million through a non-brokered private placement offering (the "Offering") of up to 30 million units (the "Units"). Each unit will be priced at $0.22, and will consist of one common share and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to acquire one Aquila common share for $0.30 for a period of 36 months from the private placement closing date.
Aquila intends to use the net proceeds from the private placement to complete a Feasibility Study for the Company's zinc- and gold-rich Back Forty project, strengthen and expand its management team as it prepares for the construction phase at Back Forty and for general working capital purposes.
The private placement is expected to close on or about January 31, 2017 subject to customary closing conditions, including receipt of TSX approval. In conjunction with the private placement, the Company may pay finders' fees of up to 5% of the capital raised and broker warrants representing 5% of the units issued under the placement.
About Aquila Resources
Aquila Resources Inc. (TSX: AQA) is a development-stage company with strategic assets in the Great Lakes Region. The company's experienced management team is currently focused on advancing permitting activities for its 100%-owned gold- and zinc-rich Back Forty Project in Michigan.
Aquila's flagship Back Forty Project is a volcanogenic massive sulfide (VMS) deposit located along the mineral-rich Penokean Volcanic Belt in Michigan's Upper Peninsula. In its updated Preliminary Economic Assessment filed in September 2014, Back Forty demonstrated strong economics with a pre-tax NPV of $282 million ($210.8 million after-tax) and a pre-tax IRR of 38.8% (32% after-tax) based on mining 16.1M tonnes of measured, indicated, and inferred resources over the 16-year life of mine, of which 12.5M tonnes will be open-pit and 3.6M tonnes will be underground.