Mr. Ivan Bebek reports
AURYN RESOURCES ARRANGES $4.6 MILLION FLOW-THROUGH FUNDING
Auryn Resources Inc. has arranged a $4.6-million non-brokered flow-through private placement. The placement will consist of approximately 1.25 million flow-through common shares priced at $1.60 per FT share and approximately 1.5 million charity flow-through shares priced at $1.75 per charity FT share.
Ivan Bebek, executive chairman, commented, "This offering, raised at a premium to our current share price, will fund the remainder of our Canadian exploration programs this summer and preserve our hard-dollar treasury for corporate costs and the ongoing exploration at our Sombrero project in Peru."
The company intends to use the net proceeds from the offering to finance its summer exploration programs at the Committee Bay and Gibson MacQuoid gold projects in Nunavut and the Homestake Ridge gold project in British Columbia.
The FT shares will qualify as flow-through shares (within the meaning of Subsection 66(15) of the Income Tax Act (Canada)).The charity FT shares will also qualify as flow-through shares and will be sold on a charitable flow-through basis.The gross proceeds of the sale of the offering will be used to finance Canadian exploration expenses (within the meaning of the Income Tax Act (Canada)) to be incurred by no later than Dec. 31, 2019, for renunciation to investors in the offering effective Dec. 31, 2018.
The shares under the offering will be subject to a four-month hold period and will not be offered or registered in the United States. Commissions may be paid on a portion of the proceeds from the offering. Closing of the offering is anticipated to occur on or before Aug. 2, 2018, and is subject to customary closing conditions including, but not limited to: the negotiation, execution of subscription agreements and receipt of applicable regulatory approvals, including approval of the Toronto Stock Exchange.
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