Auryn Accelerates Purchase of Sombrero Concessions from Alturas
Auryn Accelerates Purchase of Sombrero Concessions from Alturas
Vancouver, Canada – September 3, 2020 – Auryn Resources Inc. (TSX: AUG, NYSE AMERICAN:
AUG) (“Auryn” or the “Company”) is pleased to announce that it has completed the purchase of six
Sombrero copper-gold concessions in southern Peru that had been optioned in 2016 from Alturas
Minerals S.A. (“Alturas”) (TSX-V: ALT, LMA: ALT) (Figure 1) . The final option payment of
US$5,000,000 due to Alturas was reduced to approximately US$3,000,000 in consideration of early
exercise of the option. Payment will be made through the issuance of 1,100,000 Auryn common shares
negotiated at C$2.90 and US$621,466 in cash. The shares are subject to a 4-month resale restricted
period in Canada and will not be registered in the United States.
A Message from Ivan Bebek, Executive Chairman & Director of Auryn:
“We view Sombrero as a district-scale exploration opportunity and are pleased to exercise the Alturas
option agreement with a discount to the final payment.
“Cleaning up our ownership will streamline the process of obtaining the remaining permits needed for
drilling, which we anticipate in the first quarter of 2021.
“We are also working toward permitting the Nioc and Good Lucky targets within the Sombrero district
to create a pipeline of drill -ready targets that can be advanced consecutively, avoiding further work
delays due to permitting. Results from ongoing surface work programs and updates on permitting
advancements can be expected in September and October.”
Figure 1: Illustrates the location of the Alturas concessions on the Sombrero North property in relation to Auryn’s exploration
targets.
About the Sombrero Project:
The Sombrero property is located in southern Peru, approximately 345 kilometers southeast of Lima.
It comprises over 130,000 hectares of which the Alturas option was 4,600 ha. Auryn believes Sombrero
is hosted within a northwestern extension of the Andahualylas-Yauri copper-gold porphyry and skarn
belt, which hosts the Las Bambas, Haquira, Los Chancas, Cotambambas, Constancia, Antapaccay
and Tintaya deposits.
Michael Henrichsen P. Geol. is the Qualified person who has reviewed the technical contents of this
news release.
ON BEHALF OF THE BOARD OF DIRECTORS OF AURYN RESOURCES INC.
Ivan Bebek
Executive Chairman
For further information on Auryn Resources Inc., please contact Natasha Frakes, Manager of
Corporate Communications at (778) 729-0600 or [email protected].
About Auryn
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 built a portfolio of six projects in
Canada and Peru containing gold, silver and copper resources and exploration targets. On July 29, 2020, Auryn
announced its intention to spin out its Peruvian assets into two new companies and acquire Eastmain Resources,
creating a Canadian gold-focused exploration and development company to be renamed as Fury Gold Mines. The
Company’s two flagship Canadian properties are the Committee Bay gold project in Nunavut and Homestake gold
project in British Columbia for which an amended preliminary economic assessment was filed effective June 24,
2020. Upon closing of the spinout and acquisition transactions, expected in October 2020, Fury Gold’s three core
assets will comprise of Eau Claire in Quebec, Committee Bay and Homestake Ridge. Auryn shareholders,
invested prior to the completion of the transactions, will become shareholders of Fury and will also receive shares
in the two new Canadian spin out companies, one holding the Sombrero copper-gold project, and the other holding
both the Curibaya silver-gold project and Huilacollo gold project. Auryn’s technical and management teams have
an impressive track-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. For more
information on the company and the transactions, please visit www.aurynresources.com.
Forward Looking Information and Additional Cautionary Language
This release includes certain statements that may be dee med “forward -looking statements”. Forward -looking
information is information that includes implied future performance and/or forecast information including
information relating to or associated with the acquisition and title to mineral concessions or the d etermination of
the possible geological settings of such concessions. These statements involve known and unknown risks,
uncertainties and other factors which may cause actual results, performance or achievements of the Company to
be materially different (e ither positively or negatively) from any future results, performance or achievements
expressed or implied by such forward -looking statements. Readers should refer to the risks discussed in the
Company’s Annual Information Form and MD&A for the year ended D ecember 31, 2019 and subsequent
continuous disclosure filings with the Canadian Securities Administrators available at www.sedar.com and the
Company’s registration statement on Form 40-F filed with the United States Securities and Exchange Commission
and available at www.sec.gov.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy
of this release.