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Auryn Resources Inc
Symbol AUG
Shares Issued 95,169,900
Close 2019-09-05 C$ 1.71
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Auryn Resources arranges $6M bridge loan commitment

2019-09-06 07:28 ET - News Release

Mr. Ivan Bebek reports


Auryn Resources Inc. has arranged a bridge loan commitment for up to $6-million to finance the company's near-term corporate and working capital needs. The bridge loan is scheduled to complete on or before Sept. 12 and is subject to the negotiation of a definitive agreement, customary closing conditions, and Toronto Stock Exchange and New York Stock Exchange American approval.

A message from Ivan Bebek, executive chairman and 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 Sept. 12, 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 cent per annum and will be repayable no later than one year after the date of advancement; 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 per common share but cannot be exercised until after the maturity date.

About Auryn Resources Inc.

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 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.

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