It appears that certain big name investors took notice of the excellent drill results posted by AUX Resources (TSXV: AUX) yesterday. The company this afternoon announced that the well known mining financier Eric Sprott will be taking a stake in the firm under a non-brokered private placement.
The placement will see Sprott take down a $2.0 million investment in the company, while another unnamed strategic investor will purchase units as well to maintain their stake in the company. All told, the company will raise gross proceeds of $2.5 million under the non-brokered financing.
The financing will see units of the company sold at a price of $0.225 per unit. Each unit contains one common share and one common share purchase warrant, with each warrant valid for a period of two years from the date of issuance, and contain an exercise price of $0.40 per share.
AUX Resources last traded at $0.295 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.
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