VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 25, 2007) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Aurora Energy Resources Inc. (TSX:AXU) announced today that that it has entered into an agreement to sell an aggregate of 5,312,500 Common Shares in the capital of the Company at a price of $16.00 per Common Share and an aggregate of 750,000 Flow-Through Shares at a price of $20.50 per Flow-Through Share for aggregate gross proceeds to the Company of approximately $100,000,000 on a bought deal basis. The underwriting syndicate is co-led by Cormark Securities Inc. and RBC Capital Markets Inc. (the "Lead Underwriters") and including National Bank Financial Inc., Blackmont Capital Inc. and Dundee Securities Corporation.
The Company shall use the gross proceeds from the sale of the Flow-Through Shares to pay exploration expenses on the Company's properties which qualify as Canadian Exploration Expenses (as such term is defined in the Income Tax Act (Canada)) provided the definition of Flow Through Mining Expenditure is amended in accordance with the draft legislation released by the Ministry of Finance on October 2, 2007 and which will qualify as Flow-Through Mining Expenditures (as such term is defined in the Income Tax Act (Canada)). The Company shall use the net proceeds from the sale of the Common Shares for further advancement of the Company's Michelin and Jacques Lake deposits, additional exploration of the Central Mineral Belt of Labrador and general corporate purposes.
The Common Shares and Flow-Through Shares to be issued under this offering will be offered by way of a short form prospectus in all provinces in Canada, except Quebec, in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws and such other jurisdictions as may be agreed upon by the Company and the underwriting syndicate.
The offering is scheduled to close on or about November 20, 2007 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the securities regulatory authorities.
Except for the statements of historical fact contained herein, certain information presented constitutes "forward-looking statements". Such forward-looking statements, including but not limited to, those with respect to the timing and amount of estimated future resources and resource conversion rates and the potential for further equity dilution involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Aurora to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks related to the actual results of current exploration activities, conclusions of economic evaluations, uncertainty in the estimation of mineral resources, changes in project parameters as plans continue to be refined, future prices of uranium, economic and political stability in Canada, the state of the capital markets, environmental risks and hazards, increased infrastructure and/or operating costs, labor and employment matters, and government regulation as well as those factors discussed in the section entitled "Risk Factors" in Aurora's Annual Information Form dated March 16, 2007, available on SEDAR at www.sedar.com . Although Aurora has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Aurora disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking statements.