/NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, June 29, 2017 /CNW/ - AuRico Metals Inc.
(TSX: AMI) ("AuRico" or the "Company") is pleased to announce
the closing of the private placement financing announced on
June 6, 2017. Pursuant to the
financing, AuRico has issued 3,401,361 flow-through common shares
of the Company (the "Shares") at a price of C$1.47 per Share for gross proceeds of
C$5,000,000 (the "Offering"). Red
Cloud Klondike Strike Inc. and Laurentian Bank Securities Inc.
co-led the syndicate of agents, which included Macquarie Capital
Markets Canada Ltd. and Paradigm Capital Inc.
As part of the Offering, Alamos Gold Inc. exercised its
participation right to maintain its proportionate ownership
interest in the Company.
An amount equal to the gross proceeds of the Offering will be
used by the Company to incur "Canadian exploration expenses" (as
defined under the Income Tax Act (Canada)) at the Company's Kemess East Project
located in British Columbia,
Canada and will be renounced by the Company in favour of the
purchasers of the Shares with an effective date of no later than
December 31, 2017.
All of the securities sold pursuant to the Offering are subject
to a four month hold period which will expire four months and one
day from the date hereof.
The securities offered have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold
in the United States absent
registration or any applicable exemption from the registration
requirements. This press release does not constitute an offer
to sell or the solicitation of an offer to buy nor will there be
any sale of the securities in any state in which such offer,
solicitation or sale would be unlawful.
About AuRico Metals
AuRico Metals is a mining development and royalty company with a
100% interest in the Kemess property in British Columbia, Canada. The Kemess property
hosts the feasibility-stage Kemess Underground Gold-Copper Project,
the Kemess East Project, and the infrastructure pertaining to the
past producing Kemess South mine. AuRico's royalty portfolio
includes a 1.5% NSR royalty on the Young-Davidson Gold Mine and a
2% NSR royalty on the Fosterville Gold Mine, as well as a portfolio
of additional producing and pre-production royalty assets located
in North America and Australia.
Cautionary Statement
This news release contains "forward-looking information"
which may include, but is not limited to, statements with respect
to the future financial or operating performance of the Company and
its projects, as well as the use of proceeds from the Offering.
Often, but not always, forward-looking statements can be identified
by the use of words such as "plans", "expects", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates", or "believes" or variations (including negative
variations) of such words and phrases, or state that certain
actions, events or results "may", "could", "would", "might" or
"will" be taken, occur or be achieved. Forward-looking statements
involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of
the Company to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements. Forward-looking statements contained
herein are made as of the date of this press release and the
Company disclaims any obligation to update any forward-looking
statements, whether as a result of new information, future events
or results or otherwise. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. The Company undertakes no
obligation to update forward-looking statements if circumstances,
management's estimates or opinions should change, except as
required by securities legislation. Accordingly, the reader is
cautioned not to place undue reliance on forward-looking
statements. The Company believes that, in addition to conventional
measures prepared in accordance with IFRS, certain investors use
this information to evaluate the Company's performance and ability
to generate cash flow.
SOURCE AuRico Metals