07:24 AM EDT, 07/18/2024 (MT Newswires) -- Rua Gold ( NZAUF ) , which saw its shares gain 8.1% yesterday, overnight Wednesday provided a clarification in relation to its news release of July 15, 2024, that had a heading "RUA GOLD ( NZAUF ) to acquire Siren Gold's Reefton assets and become the dominant Reefton Goldfield explorer".

Rua clarified its statement regarding tenements owned by Reefton Resources. It also said verification of historical estimates was required to upgrade them to current mineral resources.

Separately, Rua entered into an agreement with a syndicate of agents in connection with the public offering of 44,445,000 common shares in the capital of the company at a price of C$0.18 per common share for aggregate gross proceeds of near C$8 million. It said the Offering is expected to close on or about July 25, 2024, or such other date as agreed upon between the company and the agents, and is subject to certain conditions including, but not limited to the receipt of all necessary regulatory approvals.

The company has granted to the agents an option exercisable, in whole or in part, within 30 days after the closing date to sell, at the Offering price, up to 6,666,750 additional common shares (being that number of additional common shares equal to 15% of the number of common shares issuable pursuant to the Offering) for market stabilization purposes and to cover over-allotments, if any.

The company added it intends to use the net proceeds from the Offering for continuing the exploration program on its Reefton Project, and for general working capital and general corporate purposes.