Auriana CEO Keith Barron pledges $2.0 million loan to company
Aurania Resources Ltd. [ARU-TSXV, AUIAF-OTCQB, 20Q-FSE] said its Chairman, President and CEO Dr. Keith Barron has agreed to provide a loan of up to US$2.09 million to the company to be advanced from time to time in principal amounts as agreed to by the parties.
Barron privately co-founded Ecuador gold explorer Aurelian Resources Inc., which made the colossal Fruta del Norte gold discovery in 2006. He received the Thayer Lindsley International Discovery Award for his role in the discovery of the Fruta del Norte gold deposit at the Prospectors and Developers Association of Canada convention in March 2008.
He is also the Chairman and director of Firestone Ventures [FV-TSXV].
Aurania is a mineral exploration company with a focus on precious metals and copper in South America. It’s flagship asset, The Lost Cities – Cutucu Project, lies along the geological trend of the Cordillera del Condor, an area that contains 26 million ounces of gold, principally in the Fruta del Norte deposit, and 30 billion pounds of copper in a belt of porphyries in southeastern Ecuador.
The loan is unsecured, bears interest at 2.0% annually and matures upon notice from the lender at any time following two months and one day from the dater hereof. The proceeds of the loan will be used to fund the company’s remaining 2024 mineral concession fees in Ecuador, which are due by May 1, 2025. Aside from his executive role, Barron is a principal shareholder and promoter of the company.
The loan was approved by member of the board of directors of the company who are independent for purposes of the related party transaction, being all directors other than Baron.
Regarding payment of the 2025 concession fees, the company said it is in the process of reaching an agreement with the corresponding authorities and expects to reach an agreement in similar terms as was done for the 2024 mineral concession fees. “This process may take a couple of months, meanwhile the company maintains its property in Ecuador in good standing while an agreement is being finalized,’’ Aurania said in a press release.
Aurania shares were unchanged at 26 cents. The shares are currently trading in a 52-week range of 75 cents and 19 cents.
In a press release on April 17, 2025, Aurania said it had closed the first tranche of its previously announced non-brokered private placement financing of up to 5.0 million units at a price of 30 cents per unit for gross proceeds of up to $1.5 million. An aggregate of 3.18 million units were sold under the first tranche for total gross proceeds of $954,869.70.
Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase one common share at an exercise price of 55 cents for 24 months following the closing of the first tranche.