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.

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