VANCOUVER (miningweekly.com) – TSX-listed AuRico Metals has launched a C$5-million flow-through financing for use in qualifying Canadian exploration expenses at the company's Kemess East project, in British Columbia.
Flow-through shares allow for the money raised through the sale of such shares for Canadian exploration expenses, to be renounced by the company and flowed through in favour of the buyers of the shares, making it a tax efficient vehicle for investors.
AuRico expects to flow-through the benefit to shareholders before year-end.
The Toronto-based mining development and royalty company has appointed a syndicate of agents, co-led by Red Cloud Klondike Strike and Laurentian Bank Securities, and including Macquarie Capital Markets Canada and Paradigm Capital, to sell through a brokered private placement up to 3.4-million flow-through common shares of the company, at a price of C$1.47 a share, for gross proceeds of up to C$5-million.
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 TSX.
The offering is expected to close on or about June 29, and is subject to certain conditions, including all necessary approvals, which includes the approval of the TSX.
Edited by: Creamer Media Reporter
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