Aquila Resources Announces Marketed Equity Offering
Aquila Resources has filed a preliminary short form prospectus for a marketed offering of units, aiming to raise approximately $10 million. The offering will include units composed of a common share and a purchase warrant, with pricing determined in the market context. The underwriters for this offering are led by Scotiabank. Proceeds will fund development activities at the Back Forty Project, including feasibility studies and permitting. The offering is expected to close around April 9, 2021, pending regulatory approvals.
- Aquila aims to raise approximately $10 million through a marketed offering.
- Proceeds will support development activities at the gold and zinc-rich Back Forty Project.
- Orion Mine Finance, a strategic investor and major shareholder, will participate in the private placement.
- None.
Aquila Resources Inc. (TSX: AQA, OTCQB: AQARF) (“Aquila” or the “Company”) is pleased to announce that it has filed a preliminary short form prospectus in connection with a marketed offering (the “Offering”) of units (the “Units”) for gross proceeds of approximately
Each Unit will consist of one common share in the capital of the Company (each a “Common Share”) and a common share purchase warrant (a “Warrant”). Each Warrant shall entitle the holder to acquire an additional Common Share at an exercise price to be determined in the context of the market and for a period of time to be determined, to be measured from the date of issuance of such Warrants.
The size and pricing of the Offering will be determined in the context of the market at the time of entering into a definitive underwriting agreement between the Company and the Underwriters. The Company has granted the Underwriters an option (the “Over-Allotment Option”) to purchase up to an additional
Concurrently with the Offering, the Company also intends to sell Units to certain institutional and strategic investors, including Orion Mine Finance (“Orion”), on a non-brokered private placement basis at the Offering Price (the “Private Placement”). Orion is the Company’s largest shareholder and currently holds approximately
Closing of the Offering and the Private Placement is expected to occur on or about April 9, 2021 and is subject to certain conditions, including regulatory approval, including that of the Toronto Stock Exchange.
The Company intends to use the net proceeds from the Offering and the Private Placement to fund development activities at the Back Forty Project, including the completion of an optimized feasibility study and for permitting, environmental, and legal activities, and for general corporate purposes and working capital.
The Units are being offered (i) to the public in each of the provinces and territories of Canada, except for Quebec and (ii) in the United States, only to “qualified institutional buyers” (as defined in Rule 144A under the 1933 Act, “Qualified Institutional Buyers”), in a private placement exempt from the registration requirements of the 1933 Act.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the Units in the United States. The Units have not been and will not be registered under the 1933 Act or any state securities laws and may not be offered or sold directly or indirectly in the United States except in transactions exempt from the registration requirements of the 1933 Act and all applicable state securities laws.
A preliminary short form prospectus containing important information relating to the Units has been filed with securities regulatory authorities in each of the provinces of Canada, except for Quebec. The preliminary short form prospectus is subject to completion or amendment. Copies of the preliminary short form prospectus may be obtained from the Underwriters via email at equityprospectus@scotiabank.com or by request to the Company. A copy of the preliminary short form prospectus can also be obtained under the corporate profile of Aquila on SEDAR at www.sedar.com.
ABOUT AQUILA
Aquila Resources Inc. (TSX: AQA, OTCQB: AQARF) is a development‐stage company focused on high grade and gold-rich projects in the Upper Midwest, USA. Aquila’s experienced management team is focused on advancing pre-construction activities for its
Aquila’s flagship Back Forty Project is an open pit volcanogenic massive sulfide deposit with underground potential located along the mineral‐rich Penokean Volcanic Belt in Michigan’s Upper Peninsula. Back Forty contains approximately 1.1 million ounces of gold and 1.2 billion pounds of zinc in the Measured & Indicated Mineral Resource classifications, with additional upside potential.
Aquila has two other exploration projects: Reef Gold Project located in Marathon County, Wisconsin and the Bend Project located in Taylor County, Wisconsin. Reef is a gold-copper property and Bend is a volcanogenic massive sulfide occurrence containing copper and gold. Additional disclosure of Aquila’s financial statements, technical reports, material change reports, news releases and other information can be obtained at www.aquilaresources.com or on SEDAR at
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FAQ
What is the purpose of Aquila Resources' marketed offering?
Who are the underwriters for Aquila Resources' offering?
When is the expected closing date of Aquila Resources' offering?
How will Aquila Resources use the proceeds from the offering?
What are the components of each unit being offered by Aquila Resources?
