VANCOUVER, BC , Feb. 11, 2021 /CNW/ - AUX Resources Corporation (TSXV: AUX) (OTC: AUXRF) is pleased to announce that following the release of favorable drill results from its Georgia project that Eric Sprott will take a $2,000,000 stake in AUX through a non-brokered private placement financing (" Placement ") along with an existing strategic investor who will maintain their stake. The Placement consists of 11,188,889 units (" Units ") at a price of $0.225 per Unit for gross proceeds of $2,517,500 . Each Unit consists of one common share (" Common Share ") and one full common share purchase warrant (" Warrant "). Each Warrant is exercisable into one Common Share at a price of $0.40 per common share for 24 months.
Proceeds will be used primarily to fund exploration on AUX's projects and for general working capital. A 2% finder's fee is payable in cash or Units. Closing of the Placement remains subject to the approval of the TSX Venture Exchange.
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.
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 Corporation
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