By Cory Auryn Resources Announces US$8.5 Million Financing
Here is the financing news we have been waiting for from Auryn. I will be chatting with Ivan shortly so please send me your questions – Fleck@kereport.com.
… Here’s the news…
Vancouver, British Columbia – March 13, 2018 – Auryn Resources Inc. (TSX: AUG, NYSE American: AUG, “Auryn” or the “Company”) announces that it has entered into an agreement dated March 13, 2018 with Cantor Fitzgerald Canada Corporation (“CFCC”), as bookrunner and lead underwriter, on behalf of itself and a syndicate of underwriters (collectively, the “Underwriters”) to purchase, on a bought deal basis, 5,230,770 common shares of the Company (the “Offered Shares”) at the price of US$1.30 per Offered Share (the “Issue Price”) for aggregate gross proceeds of approximately US$6.8 million (the “Offering”). In addition, the Company plans to complete a concurrent private placement of flow-through common shares for proceeds of up to US$1.7 million, as described below.
In addition, the Company has agreed to grant to the Underwriters an over-allotment option (the “Over-Allotment Option”) exercisable, in whole or in part, in the sole discretion of the Underwriters to purchase up to an additional 784,615 Offered Shares at the Issue Price for a period of up to 30 days after the closing of the Offering for potential additional gross proceeds to the Company of up to approximately US$1.02 million. The Company has agreed to pay the Underwriters a cash commission equal to 6% of the gross proceeds of the Offering, including proceeds received from the exercise of the Over-Allotment Option.
CFCC is acting as the sole book-running manager for the Offering. The Offering will be made in the United States through CFCC’s U.S. affiliate, Cantor Fitzgerald & Co.
The Company plans to concurrently conduct a private placement financing involving the sale of up to 955,384 flow-through common shares of the Company (the “Flow-Through Shares”) at a 40% premium to the Issue Price (the “FT Share Issue Price”) for anticipated proceeds of up to US$1.7 million. In the event the Over-Allotment Option is exercised, up to an additional 98,077 Flow-Through Shares may be issued under the concurrent private placement. It is anticipated that the Flow-Through Shares will be initially purchased by certain private investors who will commit to resell the Flow-Through Shares to Goldcorp Inc. Under the terms of the January 2017 Investor Rights and Obligations Agreement between Goldcorp and Auryn, Goldcorp is entitled to, among other things, participate in any subsequent offering in order to maintain up to a 12.5% interest in the Company. The Flow-Through Shares will be offered in Canada pursuant to available prospectus exemptions and will be subject to a four month hold period in Canada. The Flow-Through Shares have not been and will not be registered under the United States Securities Act of 1933, as amended, and will not be offered or sold in the United States. The bought deal Offering is not conditional on the sale of the …read more
Source:: The Korelin Economics Report