The closing represents the final step in the transaction with Eastmain first announced in July to create Fury Gold, a leading developer of Canadian gold projects. It will also result in two additional new independent companies holding Auryn's Peruvian projects.
Subscription receipts will be exchanged for shares of Fury Gold in conjunction with the release of the escrowed proceeds from the sale of the subscription receipts.
READ: Auryn and Eastmain agree bought deal private placement financing of subscription receipts to raise gross proceeds of C$22,500,000
Auryn chairman Ivan Bebek said the closing represented an “integral part” of the Fury business plan.
“The financing fulfills one of the key closing conditions of the transaction with Eastmain, which we expect to close on October 9, 2020,” Bebek told investors in a statement.
"The fully funded 50,000-meter drill program at and around the Eau Claire deposit in Quebec will be a significant catalyst for investors. We appreciate the continued support of the Auryn shareholders who participated and welcome the new future Fury shareholders."
Blair Schultz, Eastmain’s interim CEO, added that the financing puts Fury in a strong position to execute its plan to expand Eau Claire and explore several more untested targets in Quebec.
Under the term sheet, 7.75 milllion subscription receipts were sold, of which 5 million were flow-through shares priced at C$3.50 each. The remaining 2.75 million subscription receipts were sold as non-flow-through shares.
Flow through shareholders qualify for certain Canadian income tax deductions, which the junior company incurs by spending the proceeds on qualifying Canadian exploration expenses.
Auryn shares rose 5.2% in New York at US$1.93 and 4.4% in Toronto to C$2.57 on Thursday afternoon.
--Updates for share price--
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