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.
Sponsored · Cambria Gold Mines
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.
