Auryn Resources lender converts bridge loan

2020-07-07 09:20 ET – News Release

Mr. Ivan Bebek reports

AURYN LOAN HOLDER CONVERTS $3 MILLION BRIDGE LOAN INTO EQUITY

A loan holder has converted Auryn Resources Inc.’s 2019 bridge loan into common shares, thereby leaving Auryn debt-free.

The company will issue a total of 1,952,084 common shares to the lender at a price of $1.60 per share in accordance with the loan amendment that was completed on Feb. 6, 2020. From the total, 1,875,000 shares will be issued for the $3-million principal loan and 77,084 shares will be for $123,334 of interest that accrued at a rate of 10 per cent per annum up to the date of the loan amendment. The balance of the interest on the loan, that accrued at a rate of 5 per cent per annum, will be paid to the lender in cash.

A message from Ivan Bebek, executive chairman and director:

“We are pleased with the lender’s decision to convert the loan to equity. It demonstrates confidence in our ability to continue to improve shareholder value going forward. The company is now debt-free, actively exploring again in Peru and looking forward to a busy second half of 2020.”

About Auryn Resources Inc.

Auryn Resources is a technically driven, well-financed junior exploration company focused on finding and advancing globally significant precious and base metal deposits.

We seek Safe Harbor.

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