Aurcana Corporation ("Aurcana" or the "Company") is pleased to announce it has closed its non-brokered private placement for 11,587,727 units at a price of $0.22 per unit, for aggregate gross proceeds of CDN$2,549,300. Each Unit consists of one share (a "Share") and one half of one common share purchase warrant. One full common share purchase warrant (a "Warrant") will permit the holder to purchase a further common share (a "Warrant Share") for a period of 18 months from closing at a price of $0.35 per Warrant Share, provided that if the closing price of the Company's shares as traded on the Exchange, subsequent to four months from Closing, is at or over $0.70 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.
The Company paid finders' fees of 7% cash ($91,233.10) and 7% warrants (414,695 warrants) on a portion of the financing. The shares and warrants issued are subject to a four month plus one day hold from the date of closing of the private placement.
The net proceeds from this private placement will be used for advancement of the Company's expansion plans for La Negra Mine from 1,000 tons per day to 1,500 tonnes per day; feasibility and permitting work at the Shafter Mine; and to provide general working capital.
About Aurcana Corporation:
The Shafter silver mine, with a NI 43-101 measured and indicated resource of 24.6 million ounces of silver and an inferred resource of 22.8 million ounces of silver using a 4.0 ounce per ton cut off, is scheduled to produce at 3.5 million ounces silver per year. The 92% owned La Negra silver-lead-zinc-copper mine in Queretaro State, Mexico, estimates production at 1.2 million ounces silver, 5 million pounds of copper and 5 million pounds of zinc when production expansion to 1,500 tpd is completed in early 2010. The reader should be cautioned the Company has not completed a feasibility study confirming the projected production capacity for La Negra and there is no certainty the Company's plans will be economically viable.
Ron Nichols, P.Eng. a Director and Sr. Vice President for Aurcana, and a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this release.
ON BEHALF OF THE BOARD OF DIRECTORS OF
"Lenic Rodriguez", President
For further information, visit the website at www.aurcana.com or contact:
Jack Barnes, Manager Investor Relations
Phone: (604) 331-9333
Toll Free: (866) 532-9333
Fax: (604) 633-9179
Caution Regarding Forward-Looking Statements -- This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include unsuccessful exploration results, 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.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this Release.