Aurania Resources Ltd. said March 8 that it raised about C$5.3 million from its previously announced rights offering to eligible shareholders.
Under the offering launched in January, shareholders on record as of Feb. 4 could subscribe for 1 share for every 14 rights held at a C$2.70 per share. The price was at a 15% discount to the company's closing share price on Jan. 28. The company aimed to fetch gross proceeds of up to C$6.4 million.
Pursuant to the offering, the company said it issued an aggregate of 1,946,172 shares, comprising 1,618,991 shares related to the basic subscription privilege and 327,181 shares related to the additional subscription privilege.
Officers and directors of Aurania acquired a total of 1,486,480 shares, with Chairman and CEO Keith Barron receiving 1,481,480 shares after agreeing to a stand-by commitment of C$4.0 million.
Aurania has outstanding 34,882,738 shares after the offering's close.
Net proceeds will be used to fund exploration expenses and settle fees to keep Aurania's Lost Cities-Cutucu gold project in Ecuador in good standing, as well as for general and administrative expenses.