Auranova closes private placement raising $3.68M in shares and units

Auranova Resources Inc. (TSXV: AURA) has closed a non-brokered private placement, raising approximately $3.68M in aggregate gross proceeds through the issuance of flow-through shares and units, according to a press release.

The offering consisted of 2,804,334 common shares issued on a flow-through basis at $0.30 per share and 11,340,000 units at $0.25 per unit. Each unit is comprised of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to acquire one common share at $0.50 for one year from the closing date.

The company paid cash commissions of $157,338.01 to eligible persons in connection with the closing. All securities issued are subject to a hold period of four months plus one day from issuance.

Net proceeds from the unit sales will be directed toward general working capital, while gross proceeds from the flow-through shares will fund Canadian exploration expenses qualifying under the Income Tax Act (Canada) and the Taxation Act (Ontario). Qualifying expenses are to be renounced in favor of subscribers with an effective date no later than December 31, 2026.

The offering constituted a related party transaction, as insiders of the company subscribed for 680,000 flow-through shares and 2,000,000 units. Auranova relied on exemptions from valuation and minority shareholder approval requirements under Multilateral Instrument 61-101, noting that insider participation did not exceed 25% of the company's market capitalization.

The closing remains subject to regulatory approvals, including approval from the TSX Venture Exchange. Auranova is a mineral exploration company focused on precious metals projects in the Red Lake region of Ontario.

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