FACT FILE:

Qualifications for eligible businesses for Aurora funds:

Established enterprises with experienced management and a history of profitable operations and potential for growth.

New businesses with a viable plan and experienced management will also be considered.

Must operate in the NWT and not be managed or controlled directly or indirectly by one or more persons who are not ordinarily residents in Canada and not with assets more than $35 million at the time when the Aurora fund invests.

The eligible business must at all times be Canadian-controlled and foster the development of a strong and viable economy and regional prosperity in Canada.

by Jeff Colbourne
Northern News Services

NNSL - Finance Minister John Todd is trying to alleviate public concern about the management of the Aurora fund.

In a lengthy press release sent to all Northern media Nov. 5, he explains why so little has been said about the fund and has revealed details about its current status.

"A desire to protect integrity of the fund and promote investor confidence, by recognizing the privacy of the Aurora Fund contributors and loan recipients, is the basis for reluctance on behalf of this government to actively engage in the publication of such details," said Todd, who is also chair of the Aurora Fund board.

In the release, he outlines details of the eligibility requirements for NWT businesses wishing to apply for loans collected by the venture capital fund.

He also explains the current status of the 1996 Aurora Fund, indicating that all 139 notes of interest, each worth a maximum of $250,000, were picked up by foreign investors, but to date only $11.75 million (from 47 investors) have been collected and are available to be loaned out to NWT businesses, upon approval.

Seven more investors have committed to investing in the fund, but that $1.75 million has yet to be transferred to the Aurora Fund from the federal agency that oversees international investments.

Eighty-five additional subscriptions have been received with deposits ranging between $10,000 and $100,000.

Todd said that so far the Aurora board has approved five loans worth approximately $5.3 million.

The funds have enabled the purchase of three aircraft, one in Yellowknife, one in Inuvik and the third in Hay River.

Aurora funds have also helped buy a heat exchanger in Fort McPherson and digital telecommunications equipment upgrades across the North.

The remaining funds from the $11.75 million have been put into a Canadian investments portfolio.

Todd also gave an update of the Aurora Fund II, the successor to the 1996 fund.

He said 11 investors have committed a total of $2.75 million and two other investors have transferred $100,000 and are awaiting loans for the balance of their investment.

The first closing should be completed by the end of November.

Up until last week. little information had been disclosed about the Aurora Fund, despite pressure from concerned MLAs and continued media criticism.

In the last sitting of the legislature, Iqaluit MLA Ed Picco wanted to find out more about the fund, but Todd said nothing on where the funds are going.

Picco said the fund should be more "transparent" to the public.