Auryn to Raise $10 Million and to Amend Bridge Loan
VANCOUVER, BC / January 21, 2020 / Auryn Resources Inc. (TSX:AUG)(NYSE American:AUG) ("Auryn" or the "Company) is pleased to announce that it has arranged a CAD $10 million non-brokered private placement. The placement will consist of approximately 6.3 million common shares (the "Shares") priced at CAD$1.60 per Share to be issued to accredited investors in Canada and overseas.
In conjunction with the equity placement, the Company has agreed with the lender under a September 2019 bridge loan (see September 13, 2019 news release) to amend the loan to add mutual conversion rights of the loan into common shares. The loan terms will provide the lender with a convertibility right into common shares, on the $3 million that has been advanced to-date, at the placement price of $1.60, however, the lender may be required to convert if the Company's shares trade on the TSX at a price of $2.50 or more for any five consecutive trading days prior to the loan's maturity date. The lender has also agreed to reduce the interest rate of the loan to 5% per annum. The completion of the placement and loan amendment are subject to execution of agreements, TSX and NYSE approvals and other customary closing conditions.
- Category: Silver / Gold
- Published: 21 January 2020
- Written by Editor