Nov 26 2010
Elgin Mining Inc. (TSX-V: ELG) reported that it has acquired 1.8 million common shares of Auracle Resources Inc. by way of a share purchase agreement with certain shareholders of Auracle at a price of $0.02 per common share.
Elgin has also acquired 10 million units ("Units") of Auracle by way of a private placement at a price of $0.20 per Unit. Each Unit consists of one common share of Auracle and one share purchase warrants ("Warrants"). Each Warrant entitles the Company to acquire one common share until November 25, 2011 at an exercise price of $0.30 per common share. Total consideration for the investments was approximately Cdn$2.0 million. The securities acquired may be subject to certain escrow release provisions in accordance with Auracle's application to list its common shares on the TSX Venture exchange.
Elgin now holds 11,800,000 common shares of Auracle, representing approximately 46% of Auracle's issued and outstanding voting securities. Assuming conversion of the Warrants, Elgin would hold 21,800,000 common shares of Auracle, which would represent an ownership interest of approximately 60% of Auracle. The common shares of Auracle do no trade on any stock exchange.
Elgin has acquired the common shares of Auracle for investment purposes only. Elgin may acquire additional common shares of Auracle but does not have any present intention of doing so.
Source: Elgin Mining Inc.