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

Auryn Resources Inc (TSE:AUG) (NYSEAMERICAN:AUG) announced it is set to raise C$10 million from a placing and has amended a previously announced bridge loan. 

The placing proceeds will be used to fund continued surface exploration at its Sombrero and Curibaya projects located in southern Peru and for general working capital, the Vancouver-based resource group said on Tuesday. 

“Auryn continues to see significant financial support for its programs from the financial community,” said Ivan Bebek, the group’s executive chairman and director. 

READ: Auryn Resources says age of mineralization at Sombrero matches major deposits in Andahuaylas-Yauri belt

“This placement and loan amendment position us to execute on our exploration programs with a robust balance sheet going into 2020, which we believe could be a pivotal year for us.”

The placing sees the firm issue around 6.3 million shares priced at C$1.60 to accredited investors in Canada and overseas.

As reported last September, the bridge loan, announced then, consisted of two tranches of C$3 million each (the first tranche was received last year).

The amended terms mean the lender now has convertibility right into common shares on the C$3 million that has been advanced to-date, at the placing price of C$1.60.

The lender may also be required to convert if Auryn shares trade on the TSX at C$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% a year.

The completion of the placement and loan amendment are subject to execution of agreements, TSX and NYSE approvals and other customary closing conditions, Auryn said today.

Closing of the placement and loan amendment is anticipated to occur on or about January 31 this year.

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Story by ProactiveInvestors