Palamina Corp. to Acquire Aurania's Subsidiary in Peru

Rhea-AI Summary

Aurania Resources (TSXV: ARU) (OTCQB: AUIAF) (FSE: 20Q) announced the sale of its wholly-owned Peruvian subsidiary, Sociedad Minera Vicus Exploraciones S.A.C., to Palamina Corp. This transaction includes Aurania receiving 350,000 common shares of Palamina and a 1% Net Smelter Return (NSR) royalty on certain mining claims in Peru. Palamina can buy back half of the NSR for $1,000,000 at any time. Aurania’s President and CEO, Dr. Keith Barron, expressed satisfaction with the agreement, citing Palamina’s commitment to adding value to the Peruvian project while Aurania focuses on its activities in Ecuador and France.

Positive

• Aurania receives 350,000 common shares of Palamina, boosting its asset portfolio.
• The 1% NSR royalty offers potential ongoing revenue from mining claims in Peru.
• Palamina's option to buy back half of the NSR for $1,000,000 provides further financial flexibility.

Negative

• Aurania loses direct control and potential future profits from the subsidiary in Peru.
• The financial benefit from the NSR royalty is uncertain and dependent on mining success.

Toronto, Ontario--(Newsfile Corp. - June 10, 2024) - Aurania Resources Ltd. (TSXV: ARU) (OTCQB: AUIAF) (FSE: 20Q) ("Aurania" or the "Company") announces that it has signed a share purchase agreement (the "Agreement") with Palamina Corp. ("Palamina") whereby Aurania has agreed to sell to Palamina 100% of the shares of Aurania's Peruvian wholly-owned subsidiary, Sociedad Minera Vicus Exploraciones S.A.C. ("Vicus"). Under the Agreement, Aurania will receive 350,000 common shares of Palamina and a 1% Net Smelter Return ("NSR") royalty over certain mining claims located in Peru which are held by Vicus. Palamina has the option to buy back half of the NSR for $1,000,000 at any time.

President and CEO, Dr. Keith Barron commented, "We are very pleased to reach this agreement with Palamina because of their plans to bring value to the project in Peru. Aurania will keep an interest through the NSR, and our focus will continue to be on advancing activities in Ecuador and France."

About Palamina Corp.
Palamina is a gold exploration company with a land bank of gold projects in the Puno Orogenic Gold Belt in south-eastern Peru. Palamina is set to commence a drill program at its Usicayos gold project. Palamina holds a 15.4% equity interest in Winshear Gold Corp. are also scheduled to conduct an inaugural drill program at their Gaban Gold Project in 2024. Palamina also has an "acquire and hold" strategy with copper silver assets in the Santa Lucia district in southeastern Peru and the San Martin district in northeastern Peru. Palamina has 71,634,836 shares outstanding and trades on the TSX Venture Exchange under the symbol PA and on the OTCQB Venture Market under the symbol PLMNF.

About Aurania
Aurania is a mineral exploration company engaged in the identification, evaluation, acquisition and exploration of mineral property interests, with a focus on precious metals and copper in South America. Its flagship asset, The Lost Cities - Cutucu Project, is located in the Jurassic Metallogenic Belt in the eastern foothills of the Andes mountain range of southeastern Ecuador.

Information on Aurania and technical reports are available at www.aurania.com and www.sedarplus.ca, as well as on Facebook at https://www.facebook.com/auranialtd/, Twitter at https://twitter.com/auranialtd, and LinkedIn at https://www.linkedin.com/company/aurania-resources-ltd-.

For further information, please contact:

Carolyn Muir
VP Corporate Development & Investor Relations
Aurania Resources Ltd.
(416) 367-3200
carolyn.muir@aurania.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.

Cautionary Statement Regarding Forward-Looking Information:
This news release contains forward-looking information as such term is defined in applicable securities laws, which relate to future events or future performance and reflect management's current expectations and assumptions. The forward-looking information includes statements about the share purchase agreement with Palamina Corp., the completion of the sale and purchase, and any expectations related to the development of Aurania's properties and Aurania's mining operations. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to Aurania, including the assumption that there will be no material adverse change in copper and precious metal prices, and that all necessary consents, licenses, permits and approvals will be obtained, including various local government licenses. Investors are cautioned that these forward-looking statements are neither promises nor guarantees and are subject to risks and uncertainties that may cause future results to differ materially from those expected. Risk factors that could cause actual results to differ materially from the results expressed or implied by the forward-looking information include, among other things, any failures to obtain or delays in obtaining required regulatory licenses, permits, approvals and consents, an inability to access financing as needed, a general economic downturn, a volatile stock price, labour strikes, political unrest, changes in the mining regulatory regime governing Aurania, and a failure to comply with environmental regulations. Aurania cautions the reader that the above list of risk factors is not exhaustive.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/212300

FAQ

What did Aurania Resources announce on June 10, 2024?

Aurania announced the sale of its Peruvian subsidiary to Palamina Corp.

What does Aurania receive from the sale of its Peruvian subsidiary?

Aurania receives 350,000 common shares of Palamina and a 1% NSR royalty on certain mining claims in Peru.

Can Palamina buy back the NSR royalty?

Yes, Palamina can buy back half of the NSR for $1,000,000 at any time.

What is the stock symbol for Aurania Resources?

Aurania Resources is traded under the symbol AUIAF on the OTCQB.

What are Aurania's future plans following the sale of its Peruvian subsidiary?

Aurania plans to focus on advancing its activities in Ecuador and France.