|August 15, 2011|
Aura Silver Appoints Union Securities Ltd. as Agent for Brokered Private Placement for Proceeds of up to $4.0 Million
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 the appointment of Union Securities Ltd. ("Union") to act as its agent, on a commercially reasonable basis, to offer, by way of a brokered private placement, units (the "Units") at a price of $0.15 per Unit and flow-through units (the "FT Units") at a price of $0.17 per Unit for aggregate total gross proceeds of up to $4,000,000 (the "Offering"). Assuming only Units were sold, the maximum Offering would result in 26,666,666 Units being issued.
Each Unit will consist of one common share and one-half common share purchase warrant at an issue price of $0.15 per Unit. Each FT Unit will consist of one flow-through common share and one-half non-flow-through common share purchase warrant at an issue price of $0.17 per FT Unit. Each whole warrant in both the Units and FT Units will entitle the holder to acquire, upon exercise, one common share at a price of $0.20 per share for a period of 24 months from the closing date of the Offering (the "Warrants"). Additionally, Warrants will be callable during the 24 month period, at the option of the Company, should the Company's common shares trade above $0.40 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 their services, agents will be paid a commission equal to 8% of the gross proceeds from the Offering, payable in cash. In addition, agents will receive non-transferrable agent's compensation options to acquire that number of Units equal to 10% of the number of Units and FT Units sold and purchased under the Offering. The agent's compensation options will be exercisable for a period of 24 months from the closing date at a price of $0.15 per Unit. The Company has agreed to pay certain expenses reasonably incurred by Union in connection with the financing.
The Units and FT Units issued in the Offering will be subject to a four month hold period from the closing date. This brokered private placement is subject to TSX Venture Exchange acceptance.
Aura Silver intends to use the net proceeds from the sale of Units 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. Proceeds from the sale of FT Units will be used to fund ongoing drilling programs and related exploration costs for the Company's 100% owned Greyhound, Nunavut project. The flow-through share proceeds will be used to fund these Canadian exploration expenses prior to December 31, 2012 at the latest. The Company intends to renounce the qualifying expenditures to subscribers for the year ended December 31, 2011.
The offered 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.
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. Aura Silver has 87,853,590 common shares outstanding.
For further information regarding this financing contact: Robert Boaz, President and CEO at (905) 403-8010 or by e-mail at email@example.com. Aura Silver's web site is located at www.aurasilver.com.
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 including the uncertainty as to whether further exploration will result in the target(s) being delineated as a mineral resource, capital expenditures, operating costs, mineral resources, recovery rates, grades and prices, estimated goals, expansion and growth of the business and operations, the private placement financing activities of the Company, plans and references to the Company's future successes with its business 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.