Error! Unknown document property name. Auryn and Eastmain Announce a C$22.5 Million Equity Financing
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Auryn and Eastmain Announce a C$22.5 Million Equity Financing
Vancouver & Toronto, Canada – August 31, 2020 – Auryn Resources Inc. (TSX: AUG, NYSE American:
AUG) (“Auryn” or the “Company”) and Eastmain Resources Inc. (TSX: ER) (“ Eastmain”) are pleased
to jointly announce that Auryn has entered into an agreement with a syndicate of Canadian underwriters
in connection with a bought deal private placement financing (the " Bought Deal Offering") of an
aggregate of 7,500,000 subscription receipts of the Company (the " Subscription Receipts") to raise
gross proceeds of C$22,500,000. The Subscription Receipts will be exchanged for common shares of
Auryn concurrently with completion of the recently announced transaction whereby Auryn will acquire
Eastmain (“Eastmain Transaction ”) after spinning-out Auryn’s Peruvian operations to Auryn
shareholders. The Eastmain Transaction will create Fury Gold Mines Limited (“ Fury Gold”), a leading
developer of Canadian gold projects. It will also result in two additional new independent companies
holding Auryn’s Peruvian projects. The sale of Subscription Receipts will fulfill a principal condition of the
Eastmain Transaction.
A Message from Ivan Bebek, Executive Chairman & Director of Auryn:
“We are excited to welcome these investors as new shareholders of Fury Gold and to position the
company with $22.5 million to carry out its aggressive growth plans through exploration and development
over the next 12 months. With this financing condition met, we look forward to our planned 50,000-meter
drill program commencing this fall to expand the Eau Claire high-grade gold deposit, following the closing
of the Eastmain Transaction.”
A Message from Blair Schultz, Interim President & CEO of Eastmain:
“This financing is a big step forward for Eastmain as we prepare to become Fury Gold Mines
shareholders. Fury is creating a Canadian focused gold company, well positioned to capitalize on the
opportunities at Eau Claire and across its pipeline of high-grade gold assets.”
The Subscription Receipts are being concurrently sold in two tranches. The first tranche of Subscription
Receipts will be issued at a price of C$2.00 per Subscription Receipt for gross proceeds of C$5,000,000
and the second tranche of Subscription Receipt s will be issued at the higher price of C$3.50 per
Subscription Receipt (the “FT Price”) and will be exchanged for Fury Gold shares, which are designated
as flow through shares as described below. Pricing of the Subscription Receipts reflects that the Fury
Gold common shares, into which both tranches of the subscription receipts will be exchanged on a basis
of one Subscription Receipt into one common share of Fury Gold, are as constituted after the spinout of
Auryn’s Peruvian projects and common share conso lidation. Therefore, the subscription receipts do not
participate in the spin-outs and will not be consolidated.
Common shares that qualify as “flow-through shares” require the Company to renounce in favour of the
investors who paid the FT Price certain C anadian income tax deductions which the Company incurs by
spending the proceeds on qualifying Canadian exploration expenses. The Company does not have any
near term need for these income tax deductions and shares designated as “flow through shares” are
otherwise identical to the Company’s other common shares. The flow through obligations will be met
when the Company completes its planned drill program at the Eau Claire project in Quebec.
Auryn Resources Inc.
TSX: AUG NYSE American: AUG
www.aurynresources.com
Eastmain Resources Inc.
TSX: ER
www.eastmain.com
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Further details regarding the Eastmain Transaction including its principal completion conditions can be
found in the Company’s and Eastmain’s joint news release dated July 29, 2020. The Bought Deal Offering
is scheduled to close on September 24, 2020 and is subject to customary completion conditions including,
but not limited to, the receipt of certain professional opinions a nd the approval of the TSX and NYSE
American stock exchanges.
These securities will not be registered under the U.S. Securities Act of 1933, as amended, and may not
be offered or sold in the United States absent registration or an applicable exemption from the registration
requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy
any of these securities.
ON BEHALF OF THE BOARD OF DIRECTORS OF AURYN RESOURCES INC.
Ivan Bebek
Executive Chairman and Director
ON BEHALF OF THE BOARD OF DIRECTORS OF EASTMAIN RESOURCES INC.
Blair Schultz
Interim President and CEO
For further information please contact:
Auryn Resources
Natasha Frakes, Manager of Corporate Communications
778-729-0600
Eastmain Resources
Blair Schultz, Interim President and CEO
647-347-3735
Auryn Resources Inc.
TSX: AUG NYSE American: AUG
www.aurynresources.com
Eastmain Resources Inc.
TSX: ER
www.eastmain.com
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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 acqu isition 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 Fu ry 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 a n
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.
About Eastmain
Eastmain is a Canadian exploration company operating in the Eeyou Istchee emerging James Bay gold camp i n Québec.
Eastmain holds a 100% -interest in the Clearwater Property, host of the Eau Claire Project, for which it issued a Preliminary
Economic Assessment (“PEA”) in May 2018, and the Percival Discovery made in November 2018. Eastmain is also the operator
of the Éléonore South Joint Venture, located immediately south of Newmont’s Éléonore Mine, which hosts the Moni/Contact
Trend Discovery (2017)
Forward Looking Information and Additional Cautionary Language
This release includes certain statements that ma y be deemed "forward -looking statements". Forward looking information is
information that includes implied future performance and/or forecast information including information relating to or associa ted
with the acquisition , title to mineral concessions and relating to the Bought Deal Offering, including the use of proceeds and
expected closing date, and relating to the Eastmain Transaction . These statements involve known and unknown risks,
uncertainties and other factors which may cause actual results, perf ormance 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, 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.