AuMEGA Metals (ASX:AAM) launched a strategic "best efforts" private placement, aiming to raise up to CAD$10 million in aggregate gross proceeds.
The capital injection is designed to accelerate the company’s gold exploration initiatives in Newfoundland, Canada, while strengthening its overall balance sheet.
The offering consists of a tiered share structure tailored to optimise tax flow-through benefits.
AuMEGA intends to issue approximately 42.5 million flow-through shares at CAD$0.0470 and 55.1 million charity flow-through shares at a premium price of CAD$0.0544.
Additionally, the company will issue 125 million standard common shares at CAD$0.040 per share.
The diversified approach allows the company to satisfy specific Canadian tax requirements while attracting a broad range of institutional and private investors.
Under the terms of the Canadian Income Tax Act, proceeds from the FT and Premium FT shares will be dedicated exclusively to “qualifying expenditures.”
The funds are earmarked for eligible Canadian exploration expenses related to AuMEGA’s projects in Newfoundland, with a commitment to renounce these tax benefits to subscribers by the end of 2026.
Meanwhile, capital raised from the HD shares will be utilised for general administrative costs and unallocated working capital.
The offering, led by Securities as the sole bookrunner, is expected to close on or about March 3, pending final approval from the TSX Venture Exchange.