Auryn Resources raising $22.5 million in bought deal financing

Share this article

Auryn Resources Inc. [AUG-TSX, NYSE American] said Monday August 31 that it has arranged for a bought deal private placement that is expected to raise $22.5 million from the sale of 7.5 million subscription receipts of the company.

The subscription receipts will be exchanged for common shares of Auryn concurrently with the completion of Auryn’s recently announced plan to acquire Eastmain Resources Inc. [ER-TSX] following the spin-out of Auryn’s Peruvian projects to Auryn’s shareholders and completion of the concurrent financing.

The transaction will result in the creation of Fury Gold Mines Ltd. and two independent spin-out entities which will hold Auryns’ Peruvian projects.

Auryn shares eased 5.07% or 14 cents to $2.62 on volume of 185,447 shares traded.

Auryn, a 12%-owned affiliate of Newmont Goldcorp Corp., [NGT-TSX; NEM-NYSE], has been focused on scalable high-grade gold deposits in established mining jurisdictions, including Committee Bay and Gibson MacQuoid projects in Nunavut, Homestake Ridge in northwestern British Columbia and a portfolio of projects in southern Peru.

Auryn will combine its Canadian operations with Eastmain’s assets (Eau Claire and Eleonore South Joint Venture, Quebec).

Auryn’s Peruvian portfolio includes the Huilacollo and Curibaya properties in Tacna province. The company also has the option to acquire the copper-gold Sombrero property 340 km southeast of Lima.

“We are excited to welcome these investors as new shareholders of Fury Gold and to position the company with $22.5 million to carry out its aggressive growth plans through exploration and development over the next 12 months,” said Ivan Bebek, Executive Chairman of Auryn.

“With this financing condition met, we look forward to commencing our planned 50,000-metre drill program commencing this fall to expand the Eau Claire high-grade gold deposit following the closing of the Eastmain transaction.”

Under the terms of the transaction, with subscription receipts are being concurrently sold in two tranches. The first tranche will be priced at $2 each for gross proceeds of $5 million. The second tranche will be issued at $3.50 each, and will be exchanged for Fury Gold shares, which are designated as flow-through shares.


Share this article

Leave a Reply

Your email address will not be published. Required fields are marked *

Don't miss the

NEWSLETTER

Exclusive editorial

Breaking News

Quality Company Coverage

Expert Writers

You have successfully subscribed to the newsletter

There was an error while trying to send your request. Please try again.

Resource World Magazine will use the information you provide on this form to be in touch with you and to provide updates and marketing.