TORONTO, June 6, 2017 /CNW/ - AuRico Metals Inc. (TSX: AMI) ("AuRico" or the "Company") is pleased to announce that it has entered into an agreement pursuant to which it has appointed a syndicate of agents, co-led by Red Cloud Klondike Strike Inc. and Laurentian Bank Securities Inc., and including Macquarie Capital Markets Canada Ltd. and Paradigm Capital Inc., to sell by way of a brokered private placement up to 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 up to C$5,000,000 (the "Offering"). The pricing of the Offering reflects a 28% premium to the 20 day volume weighted average trading price of the Company's common shares on the Toronto Stock Exchange ("TSX").
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.
The Offering is anticipated to close (the "Closing") on or about June 29, 2017 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX.
All of the securities sold pursuant to the Offering will be subject to a four month hold period which will expire four months and one day from the date of the Closing.
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.
