Auryn Resources Inc (TSE:AUG) (NYSEAMERICAN:AUG) announced Friday that advisory firm Institutional Shareholder Services Inc recommended that shareholders vote to approve the resolutions pertaining to Auryn’s planned reorganization and acquisition of Eastman Resources at the company’s upcoming annual meeting.
The proposed transactions will create a new entity called Fury Gold Mines Limited, a Canadian-focused gold exploration and development company that combines Auryn's projects in the country with Eastmain's operations. Additionally, two new independent companies will hold Auryn's Peruvian assets, shares of which will be distributed to the company’s holders.
ISS noted that the resulting Fury Gold will have an improved capital markets profile to attract institutional investment and a solid prospect in Eastmain's Eau Claire project for near-term commercial mine development. Proxy voting of about a third of issued shares to-date has demonstrated exceedingly positive shareholder support for the transactions, the company said.
READ: Auryn Resources and Eastmain Resources close C$23 million financing ahead of deal to create Fury Gold
The advisory firm also recommended voting to approve the company’s recently closed C$23 million bought deal financing.
ISS recommended against approval of Auryn's proposed special resolution to adopt new corporate articles (read: by-laws), expressing concerns about certain requirements for advance notice of shareholder director nominees and provisions relating to directors' powers over capital alterations, use of alternate directors and inclusion of a chairperson casting vote.
In response, Auryn said it has approved changes to the articles addressing all ISS’ concerns. These revised articles will be proposed for approval at the meeting.
The annual general and special meeting will be held virtually at 10 am PT on Monday, October 5. Interested parties can login here by entering their 15-digit control number or username along with the password "auryn2020".
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