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Auryn Resources and Eastmain Resources say shareholders back plan to form Fury Gold Mines

Under the transaction, Auryn will acquire Eastmain after spinning out its Peruvian assets into two new companies and distributing the shares of those new companies to Auryn's shareholders

Auryn Resources Inc - Auryn Resources Inc and Eastmain Resources Inc say 99% of shareholders from both companies support Auryn’s spin out of its Peruvian assets and acquisition of Eastmain to form new company Fury Gold Mines Limited
Shareholders who voted by proxy represented 63.90% of Auryn's issued and outstanding shares and 34.53% of Eastmain's shares

Auryn Resources Inc (TSE:AUG) (NYSEAMERICAN:AUG) and Eastmain Resources Inc (TSS:ER) jointly announced Thursday that 99% of shareholders from both companies support Auryn’s spin out of its Peruvian assets and acquisition of Eastmain to form new company Fury Gold Mines Limited.

According to a statement, shareholders who voted by proxy represent 63.90% of Auryn's issued and outstanding shares and 34.53% of Eastmain's issued and outstanding shares, which are levels well above the participation of shareholders at Auryn's and Eastmain's previous annual general meetings. No shareholders of either company exercised dissent rights as well.

The vote in support of the transaction also follows an endorsement from independent proxy advisor Glass Lewis which, like independent proxy advisor ISS last week, recommended shareholders of each company vote in favour at their respective meetings and shareholders of Auryn vote in favour of all related matters.

READ: Auryn Resources and Eastmain Resources close C$23 million financing ahead of deal to create Fury Gold

Under the transaction, Auryn will acquire Eastmain after spinning out its Peruvian assets into two new companies and distributing the shares of those new companies to Auryn's shareholders. The transaction will also create Fury Gold, a leading developer of Canadian gold projects.

Registered shareholders of both Auryn and Eastmain still have the opportunity to vote at their respective special meetings on October 5. The meetings will be held concurrently on virtual platforms at 10 am PT. 

"We appreciate the high level of support we received, which should make Monday's meeting a very positive event,” said Ivan Bebek, executive chairman and director of Auryn. “Trading of the shares of Fury Gold Mines will commence on a date to be specified in a TSX bulletin which will be issued shortly after closing of the Transaction."

Blair Schultz, interim president and CEO of Eastmain, added: "Eastmain shareholders have enthusiastically supported the proposed acquisition by Auryn. The Board and Management thank our shareholders for the support, and we are eager to watch Fury Gold advance our Eau Claire Project."

Contact the author: patrick@proactiveinvestors.com

Follow him on Twitter @PatrickMGraham

 

Quick facts: Fury Gold Mines

Price: 1.5 CAD

TSX:FURY
Market: TSX
Market Cap: $176.63 m
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