NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Vancouver, BC, June 5, 2014 -- Aurcana Corporation ("Aurcana" or the "Company") (TSXV: AUN, OTCQX: AUNFF) announces that it has amended the terms of its marketed underwritten private placement as previously announced on April 28, 2014.
Aurcana has engaged Dundee Securities Ltd. (the "Underwriter") to act as a sole underwriter in connection with a marketed underwritten private placement of an aggregate of up to 8,000,000 units (each unit a "Unit") of the Company at a reduced purchase price of Cdn$0.55 per Unit (the "Purchase Price") for reduced aggregate gross proceeds to the Company of up to Cdn$4,400,000 (the "Offering").
Each Unit will consist of one common share (a "Share") of the Company and one common share purchase warrant (each a "Warrant"). Each Warrant will entitle the holder to purchase an additional common share (a "Warrant Share") of the Company at a reduced exercise price of Cdn$0.80 per Warrant Share for a period of 36 months from the closing of the Offering.
In addition, Aurcana, will grant to the Underwriter an option (the "Over-Allotment Option") to purchase up to an additional 1,200,000 Units (for additional gross proceed of Cdn$660,000) exercisable at the Purchase Price at any time in whole or in part up to 48 hours prior to the closing date. If this option is exercised in full, the aggregate gross proceeds to Aurcana will be Cdn$5,060,000.
In consideration for the services provided by the Underwriter to the Company under the Offering, the Company will pay to the Underwriter a commission of 6% of the gross proceeds raised under the Offering, including any Units sold under the Over-Allotment Option payable by the issuance of Units. In addition, the Company will issue to the Underwriter a compensation warrant which entitles the Underwriter to purchase such number of common shares of the Company as is equal to 6% of the number of Units sold under the Offering, including any Units sold under the Over-Allotment Option, exercisable at the Purchase Price for a period of 24 months from the Closing.
The net proceeds from the Offering will be used for the acquisition of mining equipment at the La Negra mine, exploration drilling at the La Negra property and for general working capital purposes.
Completion of the Offering is scheduled for on or about June 24, 2014, subject to the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. All securities issued in connection with the Offering will be subject to a hold period under applicable securities laws expiring four months and one day following issuance of the securities.
The offer and sale of the securities offered in the Offering has not been and will not be registered under the U.S. Securities Act of 1933, as amended, or any state securities laws, and such securities may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in the United States or in any jurisdiction in which such offer, sale or solicitation would be unlawful.
About Aurcana Corporation
Aurcana Corporation is a primary silver producing company with two properties: the La Negra Mine in Mexico and the Shafter Mine in Texas, US. The latter was put on care and maintenance in December 2013, in part due to depressed silver prices. The Company continues to plan further expansion at its La Negra Mine and to focus on surface exploration on its extensive land holdings in the Maconi Mining District.
The Company's shares are also traded in the United States on OTCQX under the symbol "AUNFF". Investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on www.otcqx.com and www.otcmarkets.com.
___________________________ Lenic Rodriguez, President & CEO AURCANA CORPORATION
For further information contact: Lenic Rodriguez, President & CEO Phone: (604) 331-9333 Toll Free: (866) 532-9333 Fax: (604) 633-9179 Email: email@example.com www.aurcana.com
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 contains certain forward-looking statements, including statements regarding the completion of the Offering and the use of net proceeds of the Offering, future plans and objectives of the Company.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or does not expect", "is expected", anticipates" or "does not anticipate" "plans", "estimates" or "intends" or stating that certain actions, events or results " may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements". Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to materially differ from those reflected in the forward-looking statements.
Actual results may differ materially from results contemplated by the forward-looking statements. Important factors that could differ materially from the Company's expectations include, among others, risks related to international operations, unsuccessful exploration results, the ability of suppliers to provide equipment, the availability of skilled labour, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as changes in metal prices, changes in the availability of funding for mineral exploration and development, unanticipated changes in key management personnel and general economic conditions. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward-looking statements, oral or written, made by itself or on its behalf, except as required pursuant to applicable securities laws. Accordingly, readers should not place undue reliance on forward-looking statements.