NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES
VANCOUVER, April 11, 2016 /CNW/ - Auryn Resources
Inc. (TSX-V: AUG, OTCQX: GGTCF "Auryn" or the
"Company") is pleased to announce that due to increased
demand, it has amended the terms of its previously announced bought
deal offering of flow through ("Flow-Through Shares") and
non-flow through shares (the "Common Shares", and together
with the Flow-Through Shares, the "Offered Shares") to
increase the size of the offering to $12,995,480. Under the amended terms of the
Offering, a syndicate of underwriters (the "Underwriters")
led by Beacon Securities Limited has agreed to purchase, on a
bought deal basis pursuant to the filing of a short form
prospectus, an aggregate of 4,115,391 Flow-Through Shares at a
price of $1.89 per Flow-Through Share
and 3,726,708 Common Shares at a price of $1.40 per Common Share (the
"Offering").
In addition, the Company has granted to the Underwriters an
over-allotment option (the "Over-Allotment Option")
exercisable, in whole or in part, in the sole discretion of the
Underwriters to purchase, in respect of the Offered Shares, up to
an additional 617,309 Flow-Through Shares and/or 559,006 Common
Shares, in any combination of Common Shares and Flow-Through
Shares, at a price of $1.89 per
Flow-Through Share and $1.40 per
Common Share, for a period of up to 30 days after the closing of
the Offering for additional aggregate proceeds to the Company of
$1,949,322. In the event that the
Over-Allotment Option is exercised in full, the aggregate gross
proceeds of the Offering to the Company will be $14,944,803.
The closing of the Offering is expected to occur on or about
May 3, 2016 and is subject to the
completion of formal documentation and receipt of regulatory
approval, including the approval of the TSX Venture Exchange.
The proceeds received by the Company from the sale of the
Flow-Through Shares will be used to incur Canadian exploration
expenditures that are "flow-through mining expenditures" (as such
terms are defined in the Income Tax Act (Canada)) on the Company's mineral concessions,
which will be renounced to the subscribers with an effective date
no later than December 31, 2016, in
the aggregate amount of not less than the total amount of the gross
proceeds raised from the issue of Flow-Through Shares. The proceeds
received by the Company from the sale of the Common Shares will be
used by the Company for general corporate and working capital
purposes.
The Offered Shares to be issued under the Offering will be
offered by way of a short form prospectus to be filed in
British Columbia, Alberta and Ontario and may be offered in the United States to Qualified Institutional
Buyers pursuant to exemptions from the registration requirements
under rule 144A of the United States Securities Act of 1933, as
amended (the "U.S. Securities Act"), in a manner that does
not require the Offered Shares to be registered in the United States. The Offered Shares may be
also sold in such other jurisdictions as the Company and Beacon may
agree. This press release does not constitute an offer to sell or
the solicitation of an offer to buy securities in the United States, nor in any other
jurisdiction.
On Behalf of the Board
Shawn Wallace
President, CEO and Director
About Auryn Resources: Auryn Resources is a junior mining
exploration company focused on delivering shareholder value through
project acquisition and development. The Company's management team
is highly experienced with an impressive track record of success in
the discovery, development, financing and monetizing of mining
assets for shareholders.
Forward Looking Information
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, exploration and or development of mineral
properties. These statements or graphical information 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.
Disclaimer
This news release does not constitute an offer to sell or a
solicitation of an offer to buy nor shall there be any sale of any
of the Offered Shares in any jurisdiction in which such offer,
solicitation or sale would be unlawful. The Offered Shares have not
been and will not be registered under the
United States (the U.S. Securities Act or any state
securities laws and may not be offered or sold within the United States or to, or for the benefit
of, U.S. persons (as defined in Regulation S under the U.S.
Securities Act) unless registered under the U.S. Securities Act and
applicable state securities laws or pursuant to an exemption from
such registration requirements.
The TSX Venture Exchange has in no way passed upon the merits of
the proposed transaction and has neither approved nor disapproved
the contents of this news release.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Auryn Resources Inc.