AUX Resources Closes $2.5 Million Financing, Sprott Takes 16.4% Stake In Firm

AUX Resources (TSXV: AUX) has closed its previously announced private placement, which largely consisted of an investment by mining financier Eric Sprott. The financing saw a total of $2.5 million raised by the company.

Under the terms of the financing, AUX sold a total of 11.2 million units at a price of $0.225 per unit. Each unit consisted of one common share and one common share purchase warrant, with warrants valid for a period of two years from the date of issuance at a price of $0.40 per share.

Of the 11.2 million units sold under the offering, Eric Sprott subscribed to 8.9 million, amounting to an investment of $2.0 million in the company. Following the close of the transaction, his stake amounts to 16.4% ownership in the company on a non-diluted basis, and a 28.2% stake on a partially diluted basis. The shares were acquired via 2176423 Ontario Ltd, a firm in which he beneficially owns.

Shares issued in connection with the financing are subject to a hold period that expires June 20, 2021.

AUX Resources last traded at $0.285 on the TSX Venture.


FULL DISCLOSURE: AUX Resources Corporation is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover AUX Resources Corporation on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

Giant Mining Encounters Native Copper As Hole MHB-34 Hits 563 Metres Depth

Verses Hits Commercialization Stage With Genius AI Platform

Related News

Fiat Expansion Is Driving Money Into Hard Assets – The Daily Dive feat Florian Grummes

Today on the Daily Dive, host Cassandra Leah sits down with that of Florian Grummes,...

Tuesday, March 23, 2021, 01:30:00 PM

Skeena Hits 5.88 G/T Gold Equivalent Over 17 Metres In New Zone

Skeena Resources (TSX: SKE) this morning had a positive development in that it has discovered...

Tuesday, September 15, 2020, 08:46:04 AM

Marathon Gold Conducts $30 Million Bought Deal Financing

The demand for gold and gold miners is heating up. Friday night after the bell,...

Sunday, May 10, 2020, 02:34:00 PM

SKRR Exploration Closes $1.2 Million Financing

SKRR Exploration (TSXV: SKRR) has closed a private placement just five days after announcement. The...

Wednesday, August 26, 2020, 09:02:21 AM

i-80 Gold Assays 48.6 Metres Of 7.54 G/T Gold At Granite Creek

i-80 Gold Corp. (TSX: IAU) reported this morning the assay results for the first phase...

Wednesday, December 8, 2021, 09:24:00 AM