viewFury Gold Mines

Auryn Resources secures C$6M bridge loan to fund working capital

The money is expected to provide enough funding for about a year's worth of working capital

Tiny business people figures beneath wooden blocks that spell 'LOAN'
The loan will consist of two $3 million tranches, the first of which is expected on September 12th

Auryn Resources Inc (TSE:AUG) (NYSEAMERICAN:AUG) announced the arrangement of a bridge loan worth up to C$6 million on Friday. 

The loan will consist of two $3 million tranches, the first of which is expected on September 12th, or the targeted closing date of the deal. It will bear interest of 10% each year.

Chairman Ivan Bebek said in a statement that the company opted for a bridge loan rather than a capital raise that would dilute its stock in order to “maintain current operations while we execute on various catalysts across our portfolio of seven gold and copper projects.”

READ: Roth sees new bull market for gold amid uncertainty; Auryn Resources, New Pacific Metals and SilverCorp Metals top picks

“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,” Bebek added.

“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.”

The money is expected to supply the company with enough working capital to last about a year.

Along with the loan, 500,000 bonus warrants will be issued when the first tranche is closed. Each warrant is exercisable at a price of C$2 per share.  

Contact Andrew Kessel at [email protected] 

Follow him on Twitter @andrew_kessel

Quick facts: Fury Gold Mines

Price: 1.77 CAD

Market: TSX
Market Cap: $208.55 m

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