Auryn Resources Discusses Upcoming Reorganization into Three Companies, Acquisition of Eastmain Resources, and Maximizing Shareholder Value with The Stock Day Podcast

Phoenix, Arizona--(Newsfile Corp. - October 6, 2020) - The Stock Day Podcast welcomed Auryn Resources (TSX: AUG) (NYSE American: AUG) ("the Company") after the completion of its successful shareholder vote in support of spinning out Auryn's Peruvian projects to shareholders, acquiring Eastmain Resources and renaming as Fury Gold Mines ("Fury"), a Canadian-focused gold exploration and development company. The vote also approved of a C$23M financing for Fury, which will fund the inaugural 50-thousand-meter drill program planned to commence in November at the newly acquired Eau Claire project in Quebec. Auryn's Executive Chairman and Director, Ivan Bebek, joined Stock Day host Everett Jolly.

"What we've just announced is that we are splitting Auryn into three companies, and we are taking over Eastmain," shared Bebek. Auryn entered into an agreement at the end of July to acquire Eastmain Resources in an all-share deal set to close on October 9, 2020. "Auryn is going to change its name to Fury Gold Mines… [and] it's going to be led by a CEO of the name Mike Timmins," he added. Timmins formerly worked at Agnico Eagle as the VP of Corporate Development and has a similar vision for the growth of Fury, which Bebek says will begin trading as soon as next week.

"The other two entities will be Sombrero Resources and Tier One Metals," said Bebek, speaking of the two companies spinning out from Auryn and holding the Peruvian assets. "For Sombrero Resources I'll be the CEO and for Tier One Metals I'll be the Chair," he added. "Sombrero's focus will be on the big gold and copper district we have…A once in a lifetime chance we're describing to go find one of the world's largest copper discoveries in Southern Peru," said Bebek, before elaborating on the potential of the project. He then shared that Sombrero Resources should be able to secure drill permits in Q1, and investors can expect to see Sombrero trading at that time as well.

Bebek then expanded on Tier One Metals, including the potential of multi-kilo silver discoveries. "In the spirit of wanting more for shareholders, we've identified a couple of other assets that are silver and gold acquisitions that we want to go and pursue before Tier One Metals resumes trading, which is expected in February of 2021," shared Bebek. "It's a pretty awesome transformation event."

"When can investors take advantage of this deal?", asked Jolly. "Our personal advice to ourselves and our friends and family is to buy shares prior to the spin out so that you get all three. The last day that we are aware of to do that is by the end of business this Thursday, October 8th," explained Bebek.

"What do you think this deal is going to create for the shareholders?", asked Jolly. Bebek elaborated on the potential of the Company's divisions, "Ultimately, yes, I'm saying that all three companies should add up to 3x Auryn's value by the time they get trading."

The conversation then turned to the Company's strategy for Fury Gold Mines Limited. "I would have to go with drilling first," said Bebek. "The 50,000-meter drill program that we're starting on November 1st is going to be substantial," he continued, noting that the project currently represents a 1.1-million-ounce deposit. "With this program, our goal is going to be to see if at the very least we can double it, which would be a tremendous value to shareholders," said Bebek. "Fury is going to become a drilling company essentially."

To close the interview, Bebek expressed his confidence in the Company's potential and value as they reorganize at the beginning of a bull market. "I think investors should take away the chance of a lifetime for us to create substantial shareholder value going forward," said Bebek.

To hear Ivan Bebek's entire interview, follow the link to the podcast here: https://audioboom.com/posts/7698940-auryn-resources-discusses-upcoming-reorganization-into-three-companies-acquisition-of-eastmain-r.

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About Auryn

Auryn Resources Inc. is a technically-driven, well-financed junior exploration company focused on finding and advancing globally significant precious and base metal deposits. Auryn built a portfolio of six projects in Canada and Peru containing gold, silver and copper resources and exploration targets. On July 29, 2020, Auryn announced its intention to spin out its Peruvian assets into two new companies and acquire Eastmain, creating a Canadian gold-focused exploration and development company to be renamed as Fury Gold Mines Limited. Auryn's two flagship Canadian properties are the Committee Bay gold project in Nunavut and Homestake gold project in British Columbia for which an amended preliminary economic assessment was filed effective June 24, 2020. Upon closing of the Transaction, Fury Gold's three core assets will comprise of Eau Claire in Québec, Committee Bay and Homestake Ridge. Auryn shareholders, invested prior to the completion of the Transaction, will become shareholders of Fury Gold and will also receive shares in the two new Canadian spin out companies, one holding the Sombrero copper-gold project, and the other holding both the Curibaya silver-gold project and Huilacollo gold project. Auryn's technical and management teams have an impressive track-record of successfully monetizing assets for all stakeholders and local communities in which it operates. Auryn conducts itself to the highest standards of corporate governance and sustainability. For more information on Auryn and the Transaction, please visit www.aurynresources.com.

Forward-Looking Information and Additional Cautionary Language

This release includes certain statements that may be deemed "forward-looking statements". Forward-looking information is information that includes implied future performance and/or forecast information including information relating to or associated with the Transaction, including the approval of the Transaction at the Meetings and the benefits of the Transaction. These statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company to be materially different (either positively or negatively) from any future results, performance or achievements expressed or implied by such forward-looking statements. Readers should refer to the risks discussed in Auryn's Annual Information Form and MD&A for the year ended December 31, 2019 and subsequent continuous disclosure filings with the Canadian Securities Administrators available at www.sedar.com and Auryn's registration statement on Form 40-F filed with the United States Securities and Exchange Commission and available at www.sec.gov and in Eastmain's continuous disclosure filings available at www.sedar.com.

Contacts

Auryn Resources
Natasha Frakes
Manager of Corporate Communications
778-729-0600
info@aurynresources.com

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Founded in 2013, Stock Day is the fastest growing media outlet for Nano-Cap and Micro-Cap companies. It educates investors while simultaneously working with penny stock and OTC companies, providing transparency and clarification of under-valued, under-sold Micro-Cap stocks of the market. Stock Day provides companies with customized solutions to their news distribution in both national and international media outlets. The Stock Day Podcast is the number one radio show of its kind in America. Stock Day recently launched its Video Interview Studio located in Phoenix, Arizona.

SOURCE:
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/65326