Aurcana Completes Non-Brokered Private Placement for CDN$4,500,000
March 17, 2006
Aurcana Corporation ("Aurcana" or the "Company") is pleased to announce that, subject to TSX Venture Exchange (the "Exchange") approval, the Company plans to complete its non-brokered private placement for a maximum of 22,500,000 Units for total proceeds of CDN$4,500,000, which was oversubscribed. Each Unit will consist of one share (a "Share") and one half of a share purchase warrant. One full warrant (a "Warrant") will permit the holder to purchase a further share (a "Warrant Share") for a period of 12 months from closing at a price of $0.25 per Warrant Share, provided that if the closing price of the Company's shares as traded on the Exchange is at or over $0.45 per share for 20 consecutive trading days, the Company will have the right to accelerate the expiry of the Warrants upon giving 30 days notice to the holders thereof.
Finders' fees of $221,540 cash will be paid and 922,400 warrants will be issued as finders' fees on a portion of the financing.
The proceeds of the private placement will be used principally for the acquisition of the La Negra Mine located in Queretaro State, Mexico (previously announced on February 6, 2006) and for working capital purposes.
In accordance with securities legislation currently in effect, the Shares, the Warrants and the Warrant Shares will be subject to a "hold period" of four months plus one day from the date of closing of the private placement.
The private placement transaction and the closing of the acquisition of the La Negra Mine is subject to acceptance by the Exchange and any other regulatory authority having jurisdiction.
The Company also announces that the closing of the acquisition of the La Negra mine has been extended to April 15, 2006 or such later date as the parties may agree in order to comply with regulatory approval requirements.
ON BEHALF OF THE BOARD OF DIRECTORS OF
"Ken Booth", President
For further information, please contact:
Phone: (604) 331-9333
Web site: www.aurcana.com
The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company.The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this Release.
NOT FOR DISSEMINATION IN THE UNITED STATES OR TO U.S. PERSONS