Aurion Resources Ltd. (TSXV: AU) (OTCQX: AIRRF) has just completed a private placement with Kinross Gold Corporation (NYSE: KGC), keeping Kinross at its steady stake of 9.99% on a partially diluted basis. This is a significant move for Aurion as it doubles down on its commitment to develop exploration projects, most notably its flagship Risti Project in Finland.
In this transaction, Kinross purchased 885,000 units at $0.61 (C$0.84) per unit, generating total gross proceeds of approximately $550,000 (CAD$743,400) based on today’s rate. Each unit consists of one Aurion common share and warrants for half a share, with each whole warrant enabling the holder to acquire one share at $0.78 (C$1.08) for three years. This is a slight premium that appeals to those interested in Aurion’s long-term potential.
The August 26 announcement detailed that the deal was designed to attract a strategic investor. Kinross is deeply familiar with Aurion, having previously acquired 9.98% of Aurion’s shares in September 2017 through another placement. This ongoing relationship has given Kinross continual rights to maintain its percentage holding. With the new financing, Kinross holds about 9.75% of Aurion’s outstanding shares and 9.99% on a partially diluted basis.
This arrangement is more than a standard cash infusion. Kinross secures the right to participate in upcoming equity financings, allowing it to keep its share at 9.99% when new shares are issued. In addition, Kinross holds the option to nominate board members if its ownership remains above set levels, though it does not plan to exercise that right for now. This ensures Kinross has influence if needed without disrupting Aurion’s current management team.
Aurion plans to use the funds from this placement for further exploration and development at Risti and general operating expenses. For a junior explorer, such capital is essential as progress in greenfield projects relies on consistent funding for drilling and study programs.
Kinross’s play is calculated. The agreement includes a common “top-up” right that allows it to purchase sufficient shares in future rounds to keep its position near 10%. Equally important, Kinross is not pushing for board control. Instead, it prefers to have the nomination option available but leaves governance to Aurion for the moment.
Aurion structured the deal as a non-brokered private placement, engaging directly with Kinross. The associated warrants allow for additional flexibility if Aurion’s Finnish assets begin delivering value. These securities are not registered under the U.S. Securities Act, meaning U.S. investors will need to wait unless they qualify for an exemption, as the placement is not offered in the United States or to U.S. persons.
Aurion continues to advance its model by developing its properties with major partners like Kinross and B2Gold Corp., while keeping its own exploration expertise active. Alongside these partnerships, Aurion now has additional capital to move forward with its plans in Finland. As gold prices fluctuate and investors remain cautious, this financing underscores how junior explorers like Aurion balance external investment with hands-on project control.
Kinross’s unchanging stake reflects confidence in Aurion’s prospects, and the new funds extend Aurion’s operational timeline for its exploration goals. The company is counting on success from its upcoming work at Risti to demonstrate that this latest round of investment was well spent.
