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Auryn Resources brings in C$10.1M from previously announced placing

The firm will use the funds for continued surface exploration at its Sombrero and Curibaya projects

Auryn Resources Inc -
As well as closing the offering, the group completed its amendment to its September 2019 bridge loan

Auryn Resources Inc (TSE:AUG) (NYSEAMERICAN:AUG) told investors that it has raised C$10.1 million following the closing of its previously announced private placing.  

The firm said it aims to use the net proceeds to pay for continued surface exploration at its Sombrero and Curibaya projects in southern Peru and for general working capital. 

As well as closing the offering, the group completed its amendment to its September 2019 bridge loan. 

READ: Auryn Resources bolsters balance sheet going into 2020 as it announces C$10M placing, amended bridge loan

Auryn said it issued over 6.3 million shares at C$1.60 a pop in the private placing, which included total insider participation of 271,875 shares for C$435,000 of proceeds.

Last year's bridge loan consisted of two tranches of C$3 million each (the first tranche was received last year).

The amended terms allows the lender to convert the C$3 million of principal advanced to-date, and C$123,334 of interest that has accrued into common shares at the placing price of C$1.60. 

This loan amendment also gives Auryn the right to require conversion if its shares trade on the TSX at C$2.50 or more for any five consecutive trading days prior to the loan's maturity date.

Reduced interest rate

Also, the interest rate of the bridge loan has been reduced to 5% a year from the date of the loan amendment.

Auryn is focused on precious and base metals and has a portfolio approach to asset acquisition.

It holds seven projects, including two flagships -  the Committee Bay high-grade gold project in Nunavut and the Sombrero copper-gold project in southern Peru.

Shares in Toronto nudged up 3.45% to C$1.80 each.

Contact the author at [email protected]

Quick facts: Auryn Resources Inc

Price: 1.47 CAD

TSX:AUG
Market: TSX
Market Cap: $153.88 m
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Auryn Resources plans drilling at the Curibaya project in Peru

Auryn Resources Inc (TSE:AUG)(NYSE:AUG) executive chairman Ivan Bebek caught up with Proactive's Andrew Scott while at Mines & Money in London 2019. The company is currently focusing on the Curibaya project in Peru, located near one of the biggest copper mines in the world. Drilling is...

on 27/11/19

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