Aurvista Gold Closes Previously Announced Private Placement Raising C$500,000
Montreal, Quebec--(Newsfile Corp. - July 25, 2016) - Aurvista Gold Corporation ( TSXV: AVA) (OTC: ARVSF) (FSE: AV2) ("Aurvista" or the "Company") has closed the non-brokered private placement of C$500,000 (the "Closing"). The Private Placement consisted of 5,000,000 units at a price of C$ 0.10 per unit for gross proceeds of C$ 500,000. Pricing was based on the closing share prices on July 8th, 2016 and was approved by the TSXV at that time. Share prices have increased sharply since that price reservation. Each unit consisted of one common share and one half warrant. Each whole warrant will entitle the holder to purchase one additional common share of the Company at an exercise price of C$ 0.13 per share for a period of 36 months from the closing date.
All the securities are subject to a four-month hold period from the Closing date. A finder's fee of C$ 16,100 will be paid in accordance with the policies of the TSX Venture Exchange (the "Exchange"), and the Company also issued 161,000 finder warrants allowing the holder to purchase one common share of Aurvista at C$ 0.13 for a period of one year from the Closing date. The private placement is subject to the final approval of the TSXV.
The Company intends on using the net proceeds from the private placement to continue advancing the Douay Gold Project and for general corporate purposes.
Vior Compensation Agreement
Aurvista acquired the Douay Gold Project in 2011 from the Société d'Exploration Minière Vior Inc. ("Vior"). The 2011 agreement provided Vior with a pre-emptive right to subscribe for shares of Aurvista in the event that Aurvista made any share issuances. Vior had wanted to participate in the Private Placement of Aurvista which closed today, but agreed not to participate at the request of Aurvista. In order to compensate Vior for not participating it was agreed that Aurvista would pay Vior C$ 120,000 for this specific offering, with its rights under the 2011 agreement remaining whole and unaffected.
Hiring of Fallon Capital Inc.
Aurvista has hired over a three-year term Fallon Capital Inc. ("Fallon'), for Promotional services under TSX Venture Exchange rules and policies. For its services, Fallon will receive 500,000 share options at a price of $0.24 per share over 5 year period, vesting 25% immediately and 25% at each anniversary following the grant. The agreement requires final approval from the TSX Venture Exchange.
About AurVista Gold Corp.
Aurvista Gold Corp. is a junior gold exploration and development Company with 90,689,121 shares outstanding trading on the TSX Venture Exchange in Canada, the Frankfurt Stock Exchange and OTC Pink Sheets in the US. Aurvista's only asset is the Douay Gold Project, consisting of a 100% owned interest in 250 contiguous claims totaling 133.1 km2, plus a 90% interest in 5 contiguous claims totaling 0.2 km2 and a 75% interest in 32 contiguous claims totaling 11.9 km2. In total there are 287 claims covering 145.3 km2 located along a 20 km segment of the Casa Berardi Deformation Zone in the prolific Abitibi Greenstone Belt of northern Quebec.
For further information please contact:
| Mr. Jean Lafleur, P. Geo. | Mr. Bryan Keeler |
| President and CEO, Director | Chief Financial Officer |
| Cell +1 514 927 3633 | +1 416 504 4126 |
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 PRESS RELEASE.
Forward-Looking Statements
This news release may contain forward-looking statements based on assumptions, uncertainties and management's best estimate of future events. Actual events or results could differ materially from the Company's expectations and projections. Investors are cautioned that forward-looking statements involve risks and uncertainties. Accordingly, readers should not place undue reliance on forward-looking statements. When used herein, words such as "anticipate", "will", "intend" and similar expressions are intended to identify forward-looking statements. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to Aurvista Gold Corp.'s filings with Canadian securities regulators available on www.sedar.com or the Company's website at www.aurvistagold.com.