Auryn Receives $6 Million Bridge Loan Commitment
Friday, September 6, 2019 7:00 AM
VANCOUVER, CANADA / ACCESSWIRE / September 6, 2019 / Auryn Resources Inc. (TSX:AUG)(NYSE AMERICAN:AUG) (“Auryn” or the “Company”) is pleased to announce that it has arranged a bridge loan commitment (the “Bridge Loan”) for up to CAD $6 million to fund the Company’s near term corporate and working capital needs. The Bridge Loan is scheduled to complete on or before September 12th and is subject to the negotiation of a definitive agreement, customary closing conditions and TSX and NYSE American approval.
A Message from Ivan Bebek, Executive Chairman & Director:
“We have chosen to use the Bridge Loan as a means of funding, instead of a dilutive equity raise, in order to continue to maintain current operations while we execute on various catalysts across our portfolio of seven gold and copper projects. The Bridge Loan facility, if used in full, should give the Company adequate working capital for approximately one year.
“The Company is currently awaiting drill results from its Committee Bay project, exploration results from its Homestake Ridge project and importantly, in-process drill permits for its Sombrero project in Southern Peru, which are progressing on schedule.
“Our portfolio of projects represents a high degree of optionality and the current increase in precious metal prices certainly improves all monetization and value-add options we may consider with our projects.”
Proposed Loan Terms
The Bridge Loan will consist of two tranches of $3 million, with the first tranche being advanced on the closing date, currently targeted for September 12th, 2019. Advancement of the second tranche is conditional upon the mutual agreement of the parties. The lender is an existing shareholder of the Company.
The Bridge Loan will bear interest at 10% per annum and will be repayable no later than one year after the date of advancement (the “Maturity Date”); however, the Bridge Loan can be repaid at any time after 90 days of advancement at the discretion of the Company without penalty. The Bridge Loan is to be secured by a first charge general security agreement over all of the Company’s present and future assets.
In connection with the Bridge Loan, 500,000 bonus warrants will be issued on the closing of the first tranche and will have a term of three years from the date of issue. Each warrant is exercisable into one common share of the Company at a price of $2.00 per common share but cannot be exercised until after the Maturity Date.
ON BEHALF OF THE BOARD OF DIRECTORS OF AURYN RESOURCES INC.
For further information on Auryn Resources Inc., please contact Natasha Frakes, Manager of Corporate Communications at (778) 729-0600 or [email protected].
Auryn Resources is a technically-driven, well-financed junior exploration company focused on finding and advancing globally significant precious and base metal deposits. The Company has a portfolio approach to asset acquisition and has seven projects, including two flagships: the Committee Bay high-grade gold project in Nunavut and the Sombrero copper-gold project in southern Peru. 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.
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 acquisition and title to mineral concessions. 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 the Company’s Annual Information Form and MD&A for the year ended December 31, 2018 and subsequent continuous disclosure filings with the Canadian Securities Administrators available at www.sedar.com and the Company’s registration statement on Form 40-F filed with the United States Securities and Exchange Commission and available at www.sec.gov.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
SOURCE: Auryn Resources Inc.