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| | February 22, 2010
Aura Silver Closes Private Placement Financing Raising Proceeds Of $1.3 Million
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| | Press Release #10-05
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO U.S NEWS WIRE SERVICES
Aura Silver Resources Inc. (TSX-V:AUU) ("Aura Silver" or the "Company") announces that it has closed its brokered and non-brokered private placement financings issuing in total, 7,790,000 units (the "Units") for gross proceeds of $1,120,300 and US$198,000, respectively. Union Securities Ltd. ("Union") acted as agent for the brokered portion of the private placement.
Each Unit consists of one common share and one common share purchase warrant ("Warrant") exercisable at a price of $0.25 (US$0.24) per share until February 22, 2012. Additionally, warrants are callable during the 24 month period, at the option of the Company, should the Company's common shares close above $0.50 for twenty consecutive trading days on the TSX Venture Exchange. Subscribers will be notified of the call provision being triggered and will have a 30 day period to exercise the warrants.
In consideration for its services, Union was paid an agency fee and an 8% commission which total $99,624. Union and one other agent have also been provided a total of 659,000 non-transferrable agent compensation options to acquire Units. The agents' compensation options are exercisable up until February 22, 2012 at a price of $0.17 per Unit. Union has also been reimbursed for certain due diligence and legal costs of the offering.
All securities issued in the offering are subject to a four month hold period expiring on June 23, 2010. This private placement is subject to final acceptance of the TSX Venture Exchange.
Aura Silver intends to use the net proceeds of the offering to fund further drilling and exploration programs at the Company's Taviche property in Oaxaca, Mexico held under option with Intrepid Mines from Pan American Silver Corporation and for working capital and general corporate requirements.
The securities will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold within the United States or to or for the account or benefit of U.S. persons, except in certain transactions exempt from the registration requirements of the U.S. Securities Act. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, securities of the Company in the United States.
Additionally, the Company is presently active with the permitting process for a drill program on its 100% owned Greyhound project. Drilling is expected to initiate during the second quarter of 2010.
About Aura Silver
Aura Silver is a TSX Venture listed company engaged in the acquisition, exploration and development of precious metal prospects in Canada (100% owned Greyhound project) and in Oaxaca, Mexico with joint venture partner Intrepid Mines Limited (TSX:IAU). Aura Silver has 49,621,902 common shares outstanding.
For further information regarding this financing contact: Robert Boaz, President and CEO at (905) 403-8010 or by e-mail at boaz@aurasilver.com. Aura Silver's web site is located at www.aurasilver.com.
FORWORD-LOOKING STATEMENTS
This press release may contain forward looking statements that are made as of the date hereof and are based on current expectations, forecasts and assumptions which involve risks and uncertainties associated with our business, the private placement financing activities of the Company and the economic environment in which the business operates. All such statements are made pursuant to the 'safe harbour' provisions of, and are intended to be forward-looking statements under, applicable Canadian securities legislation. Any statements contained herein that are statements of historical facts may be deemed to be forward-looking statements. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. We caution readers of this news release not to place undue reliance on our forward-looking statements as a number of factors could cause actual results or conditions to differ materially from current expectations. Please refer to the risks set forth in the Company's most recent annual MD&A and the Company's continuous disclosure documents that can be found on SEDAR at www.sedar.com. Aura Silver does not intend, and disclaims any obligation, except as required by law, to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. |
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