Auryn Resources to receive investment from Goldcorp
2017-01-09 09:10 ET - News Release
Auryn Resources Inc. has entered into an investment agreement with Goldcorp Inc. for a strategic equity placement whereby Goldcorp will purchase directly and indirectly in two tranches 9,542,402 common shares of Auryn for $3.67 per share. After giving effect to the placement, Goldcorp will own 12.5 per cent of Auryn's outstanding common shares.
In addition, Auryn and Goldcorp have entered into an investor rights and obligations agreement whereby, as long as Goldcorp maintains a 5-per-cent or greater equity ownership interest in Auryn:
- Goldcorp will have the right to participate in future Auryn equity issues in the amount necessary to maintain up to a 12.5-per-cent interest.
- Goldcorp will have a right to match certain non-equity financings.
- If Goldcorp chooses to sell more than 2 per cent of Auryn's shares, Auryn will have the right to designate buyers, and Goldcorp will vote its shares to elect the Auryn recommended director nominees.
Shawn Wallace, president and chief executive officer, commented that: "We are very pleased to have secured an important investment with an industry leader such as Goldcorp on favourable terms that minimizes dilution to our shareholders. Auryn is now fully funded to complete one of the most extensive, globally significant exploration programs in 2017. The program will include a planned 55,000 metres of exploration drilling across six projects in Canada and Peru, and expect to make a number of advances that could potentially contribute to the realization of multiple major gold discoveries.."
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