Auryn Receives $6 Million Bridge Loan Commitment
LEGAL_29515744.3
Auryn Receives $6 Million Bridge Loan Commitment
Vancouver, Canada – September 6, 2019 – Auryn Resources Inc. (TSX: AUG, NYSE AMERICAN:
AUG) (“Auryn” or the “Company”) is pleased to announce that it has arranged a bridge loan commitment
(the “Bridge Loan”) for up to CAD $6 million to fund the Company’s near term corporate and working capital
needs. The Bridge Loan is scheduled to complete on or before September 12 th and is subject to the
negotiation of a definitive agreement, customary closing conditions and TSX and NYSE American approval.
A Message from Ivan Bebek, Executive Chairman & Director:
“We have chosen to use the Bridge Loan as a means of funding, instead of a dilutive equity raise, in order
to continue to maintain current operations while we execute on various catalysts across our portfolio of
seven gold and copper projects. The Bridge Loan facility, if used in full, should give the Company adequate
working capital for approximately one year.
“The Company is currently awaiting drill results from its Committee Bay project, exploration results from its
Homestake Ridge project and importantly, in-process drill permits for its Sombrero project in Southern Peru,
which are progressing on schedule.
“Our portfolio of projects represents a high degree of optionality and the current increase in precious metal
prices certainly improves all monetization and value-add options we may consider with our projects.”
Proposed Loan Terms
The Bridge Loan will consist of two tranches of $3 million, with the first tranche being advanced on the
closing date, currently targeted for September 12th, 2019. Advancement of the second tranche is conditional
upon the mutual agreement of the parties. The lender is an existing shareholder of the Company.
The Bridge Loan will bear interest at 10% per annum and will be repayable no later than one year after the
date of advancement (the “Maturity Date”); however, the Bridge Loan can be repaid at any time after 90
days of advancement at the discretion of the Company without penalty. The Bridge Loan is to be secured
by a first charge general security agreement over all of the Company’s present and future assets.
In connection with the Bridge Loan, 500,000 bonus warrants will be issued on the closing of the first tranche
and will have a term of three years from the date of issue. E ach warrant is exercisable into one common
share of the Company at a price of $2.00 per common share but cannot be exercised until after the Maturity
Date.
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 has a portfolio approach to asset acquisition and has seven
projects, including two flagships: the Committee Bay high-grade gold project in Nunavut and the Sombrero copper-gold project
in southern Peru. Auryn’s technical and management teams have an impressive track record of successfully monetizing assets
for all stakeholders and local communities in which it operat es. Auryn conducts itself to the highest standards of corporate
governance and sustainability.
Forward Looking Information and Additional Cautionary Language
This release includes certain statements that may be deemed “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. 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 (either
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 December 31, 2018 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.