As a result, the company said it will issue a total of 1,952,084 common shares to the lender at a price of C$1.60 per share in accordance with the loan amendment that was completed on February 6, 2020.
From that total, 1,875,000 shares will be issued for the $3 million principal loan and 77,084 shares will be for $123,334 of interest that accrued at a rate of 10% per annum up to the date of the loan amendment. The balance of the interest on the loan, that accrued at a rate of 5% per annum, will be paid to the lender in cash.
In a brief statement, Ivan Bebek, Auryn's executive chairman & director commented: "We are pleased with the Lender's decision to convert the loan to equity. It demonstrates confidence in our ability to continue to improve shareholder value going forward. The Company is now debt-free, actively exploring again in Peru and looking forward to a busy second half of 2020."
Auryn 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.