AuraSource, Inc.: announcements explained, share price

Announcements, explained

Each one in plain English, with the numbers worked through for a shareholder.

5 Oct 2010capital raising announcement● Neutral

On September 30, 2010 the company sold 400,000 shares in a private placement for $500,000, for working capital and an AuraCoal plant in the Gulf of Tonkin area producing coal-water slurry for industrial boilers. This follows the October 2009 raise and further dilutes existing holders.

What it means for a shareholder

400,000 new shares at about $1.25 to raise about $500,000. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.

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26 Oct 2009capital raising announcement● NeutralMajor

On October 22, 2009 the company sold 5,287,324 shares in a private placement for gross proceeds of $2,643,662, to fund working capital and a pilot plant in the Gulf of Tonkin Economic and Development Area for a process turning oil shale, asphalt shale and low-ranking coal into clean fuel products. It paid Source Capital Group a $264,366 commission and will issue it 528,732 three-year warrants. New shares dilute existing holders.

What it means for a shareholder

5.3m new shares at about $0.500 to raise about $2.6m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.

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15 July 2009capital raising announcement● Neutral

On July 10, 2009 the company hired Sanicus, LLC on a non-exclusive basis to find buyers for its products and help set up a US test facility for AuraCoal. Sanicus earns a success fee on revenue collected, and received 1,725,000 warrants vesting over three years and expiring December 31, 2012, exercisable only to the extent the fee has been earned.

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24 Sept 2008capital raising announcement● NeutralMajor

A second agreement with GCI (September 21, 2008) adds three Guinea exploration licenses for 20,000,000 more escrowed shares, on the same conditions and December 31, 2008 deadline. If both deals complete, GCI would hold 30,000,000 shares, about 37% of 80,300,000 outstanding.

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18 Sept 2008capital raising announcement● NeutralMajor

Now named AuraSource, Inc., the company agreed on September 10, 2008 to receive one mineral exploration license in Guinea from Société Guinea Consultant International (GCI) for 10,000,000 shares, held in escrow until conditions are met. If completed, GCI would own about 17% of 60,300,000 shares; the agreement ends if conditions are unmet by December 31, 2008.

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