Mr. Shawn Wallace reports
AURYN RESOURCES ANNOUNCES CLOSING OF US$9.8 MILLION FINANCING
Auryn Resources Inc. has closed its previously announced bought deal offering, including the exercise in full of the underwriters' overallotment option.A total of 6,015,385 common shares of the company were sold at a price of $1.30 (U.S.) per share for gross proceeds of $7.8-million (U.S.).The offering was completed pursuant to an amended and restated underwriting agreement dated March 13, 2018, among the company and Cantor Fitzgerald Canada Corp., as sole book runner and lead underwriter, and PI Financial Corp., Canaccord Genuity Corp., Echelon Wealth Partners Inc., Haywood Securities Inc. and Roth Capital Partners LLC, as co-managers.The company paid a 6-per-cent commission to the underwriters.
In addition, the company completed a concurrent private placement financing involving the sale of 1,091,826 flow-through common shares of the company at a price equal to the Canadian dollar equivalent of $1.82 (U.S.) per share, for gross proceeds of $2-million (U.S.). The flow-through shares formed part of a donation arrangement and were ultimately purchased by Goldcorp Inc. and enabled Goldcorp to maintain its 12.5-per-cent interest in the company under the terms of the January, 2017, investor rights and obligations agreement between Goldcorp and the company. Goldcorp now owns 10,634,228 common shares of the company. The flow-through shares are subject to a four-month hold period in Canada.
The proceeds of the offering are anticipated to be used for (i) drilling and exploration at the company's principal mineral projects, Committee Bay and Homestake Ridge; (ii) continuation of exploration programs at Huilacollo and Sombrero in Peru, (iii) general corporate purposes, and (iv) working capital requirements.
Ivan Bebek, executive chairman of Auryn, stated: "With the completion of this financing, Auryn is well capitalized to advance its gold exploration portfolio in Canada and Peru. The company plans to announce detailed 2018 exploration plans in the near future and appreciates the support it continually receives from key investors and shareholders."
About Auryn Resources Inc.
Auryn Resources is a technically driven junior mining exploration company focused on delivering shareholder value through project acquisition and development. Auryn is focused on scalable high-grade gold deposits in established mining jurisdictions, which include the Committee Bay and Gibson MacQuoid gold projects located in Nunavut, the Homestake Ridge gold project in British Columbia, and a portfolio of gold projects in southern Peru, through Corisur Peru SAC.
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