Aguia Announces Closing Of Cad$5 Million Bought Deal Private Placement Offering
SYDNEY, AUSTRALIA – Aguia Resources Limited (“Aguia” or the “Company”) (ASX:AGR) (TSX VENTURE:AGRL) has announced that it has concluded a bought deal private placement financing of 14,285,800 units of the Company (the “Units”) at a price of CAD$0.35 per Unit for gross proceeds of approximately CAD$5.0 million (the “Offering”).
Each Unit consists of one ordinary share (an “Ordinary Share”) in capital of the Company and one-half of one share purchase warrant (each whole warrant, a “Warrant” and collectively the “Warrants”). Each Warrant entitles the holder thereof to acquire one Ordinary Share at a price of CAD$0.60 until April 12, 2021.
The Offering was conducted by a syndicate of underwriters co-led by Echelon Wealth Partners Inc. and PI Financial Corporation and including Mackie Research Capital Corporation and Jett Capital Advisors LLC (collectively, the “Underwriters”). In connection with closing of the Offering, the Company paid the Underwriters a cash commission equal to 6.5% of the gross proceeds of the Offering. In addition, Aguia has granted the Underwriters an over-allotment option to purchase up to an additional 2,142,870 Units at the offering price, exercisable for a period of 30 days after closing. If the over-allotment option is exercised in full, the gross proceeds from the Offering will be approximately CAD$5.75 million.
Sulliden Mining Capital Inc., a large shareholder of Aguia, placed the lead order for the Offering.
The Company intends to use the net proceeds of the Offering to initiate Phase 1 exploration on its Canhada Copper Discovery, finalize permitting at its Tres Estrada phosphate project and for general corporate and working capital purposes.