AWR Announces Increase in Private Placement of up to $5M Aurwest Resources Announces Increase in Private Placement of up to $5,000,000
Calgary, Alberta--(Newsfile Corp. - June 1, 2021) - Aurwest Resources Corporation (
CSE: AWR) ("
Aurwest" or the "
Company") is pleased to announce that due to significant market demand for its previously announced non-brokered private placement (the "
Private Placement"), the Company has increased the size of its Private Placement to up to $5,000,000. The Private Placement will be completed through the issuance of Flow-Through Units ('
FT Units") at a price of $0.18 per Unit and Ordinary Units ("
Ordinary Units") at a price of $0.15 per Ordinary Unit. The Private Placement may close in one or more tranches and the final amounts raised and number of units issued will be disclosed at the time of closing, which is expected to be on or about June 11, 2021.
Each FT Unit will consist of one flow-through share at a price of $0.18 and one share purchase warrant (each, a "FT Warrant"). Each Warrant will entitle the subscriber to purchase one additional Common Share of the Company at a price of $0.24 for 24 months from the closing date.
Each Ordinary Unit will consist of one common share at a price of $0.15 and one share purchase warrant (each, a "Ordinary Warrant"). Each Ordinary Warrant will entitle the subscriber to purchase one additional Common Share at a price of $0.20 for 24 months from the closing date.
Mr. Eric Sprott, personally and through 2176423 Ontario Ltd., a corporation which is beneficially owned and controlled by him, plans to increase his investment from the previous disclosed amount of $1,500,000 to $2,000,000 in the Private Placement, and plans to acquire approximately 5,555,555 FT Units and 6,666,666 Ordinary Units.
Mr. Cameron MacDonald, Chairman of Aurwest commented, "We are pleased to announce an upsizing of our previously disclosed Private Placement due to strong market demand for the offering. Mr. Sprott has also indicated to the Company that he plans to increase his investment in the Private Placement from $1,500,000 to $2,000,000.
The proceeds of the Private Placement will be used primarily to fund Aurwest's continuing exploration program in Newfoundland on its expansive 47,800 hectares 100% owned projects at Paradise Lake and Stony Caldera. A portion of the proceeds will also be used to further the Company's exploration program at Stellar, B.C. and for general working capital purposes.