Aurcana Silver Sees Two Largest Shareholders Exit Board Of Directors
In an obvious sign of how sourcing additional funds is going for Aurcana Silver (TSXV: AUN), the company has begun to see executives jump ship and exit the firm. The departures were included at the bottom of the firms now-routine update on the status of certain restructuring agreements.
Both David Kaplan and Elliot Rothstein have left their roles as directors of the company as of June 23. With the two having been founding partners of Lascaux Resource Capital, they both represented the firm that notably sold the company the RV Mine back in July 2018. At the time, the purchase amounted to a reverse takeover transaction, with the company issuing 83.2 million shares for the purchase.
Through Lascaux Resource Capital, the duo collectively have exposure to a total of 87.5 million shares of the company, representing roughly 28.3% of all shares outstanding in Aurcana. Lascaux is also the largest shareholder of the company. They also each individually hold 528,000 shares of the company.
Aurcana Silver is presently struggling to raise roughly US$25 million in additional capital to enable it to reset operations at the RV mine. The company had entered into a $28 million term loan in December 2020, for which the first principal payments were due in March of this year. With the mine non-operational, the firm was forced to enter a restructuring arrangement in relation to the loan, with the company currently avoiding default on the debt by constantly receiving waiver extensions.
With the restructuring announced in March, and the company still unable to source additional liquidity, the future prospects of the firm are beginning to look slim. As of Friday’s update, the company has until July 1 to source additional financing, with the two most recent extensions being for four days and seven days respectively – signaling that their lender, Mercuria Energy Group, is perhaps at the end of their leniency.
Aurcana Silver last traded at $0.075, and is presently down 81% year to date.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
