AUX Resources Corp. Closes Private Placement With Eric Sprott
Mr. Sprott through 2176423 Ontario Ltd., a corporation which is beneficially owned by him, acquired 8,888,889 Units pursuant to the Private Placement for total consideration of $2,000,000. Subsequent to the Private Placement, Mr. Sprott beneficially owns or controls 8,888,889 Common Shares of the Company and 8,888,889 Warrants representing 16.4% of the issued and outstanding Common Shares of the Company on a non-diluted basis, and 28.2% of the issued and outstanding Shares of the Company on a partially diluted basis, assuming exercise of the Warrants acquired hereunder and forming part of the Units. Prior to the Financing, Mr. Sprott did not beneficially own or control any securities of the Company.
The Units were acquired by Mr. Sprott for investment purposes and with a long-term view of the investment. Mr. Sprott may acquire additional securities of AUX either on the open market or through private acquisitions or sell securities of AUX either on the open market or through private dispositions in the future, depending on market conditions, reformulation of plans and/or other relevant factors.
A copy of 2176423 Ontario Ltd.'s early warning report will appear on AUX's profile on SEDAR and may also be obtained by calling Mr. Sprott's office at (416) 945-3294 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).
A finder's fee of $40,000 and 46,000 Units was paid. Proceeds will be used primarily to fund exploration on AUX's projects and for general working capital. The Common Shares and Warrants issued in the Placement are subject to a statutory hold period expiring on June 20, 2021.
About AUX Resources
AUX holds more than 27,000 hectares of strategic claims in the Stewart Mining Camp in the Golden Triangle of British Columbia, which is among the world's most prolific mineralized districts, including the high-grade gold Georgia Project centred on the past-producing Georgia River Mine. The Georgia River Mine, which last operated in 1939 with a head grade of 22.6 g/t gold, contains 1.2 kilometres of underground access on three levels. AUX is actively consolidating the Stewart Mining Camp.
For further information please see www.auxrc.com
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. This news release includes forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although AUX believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions and regulatory and administrative approvals, processes and filing requirements. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements.
SOURCE AUX Resources Corp.
Ian Slater, Chief Executive Officer, +1 604 638 2545, firstname.lastname@example.org, Mars Investor Relations, +1 604 715 6845, email@example.com