Aurcana Announces Closing of Private Placement Financing
Aurcana Corporation ("Aurcana" or the "Company") is pleased to announce that, further to the press release of November 15, 2011, it has completed its private placement financing. The private placement offering (the "Offering") of units ("Units") was conducted through a syndicate of agents led by RBC Capital Markets and included, BMO Capital Markets, Dundee Securities Ltd. and Stonecap Securities Inc. (the "Agents"). Pursuant to the Offering, Aurcana sold an aggregate 52,853,000 Units at a price of $0.65 per Unit for aggregate gross proceeds of approximately C$34.4 million.
Each Unit consists of one common share in the capital of the Company (the "Unit Shares") and one half of one common share purchase warrant (each whole warrant, a "Warrant"). Each full Warrant will entitle the holder, on exercise, to purchase one additional common share of the Company (a "Warrant Share"), at a price of $1.00 at any time until the close of business on the day which is 24 months from the date of issue of the Warrant. All securities issued in connection with the Offering are subject to a hold period in Canada expiring on March 30, 2012. The net proceeds of the Offering will be used for ongoing construction of the Shafter mine, mill expansion at the La Negra mine and for general corporate purposes and working capital.
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