Auryn Resources to acquire Eastmain Resources, spin out Peruvian projects
(Kitco News) - Auryn Resources is making significant moves to shake up its organization and unlock untapped potential as it builds a Canadian resource and spins out its two Peruvian projects.
Late Wednesday, the junior exploration company said that it will acquire all issued and outstanding shares of Eastmain Resources Inc. immediately following a spin out of Auryn’s Peruvian projects to Auryn shareholders and completion of a concurrent financing.
The move will transform the company’s Sombrero project into an independent company SpinCo Sombrero. The second Peruvian asset would be “SpinCo Curibaya” consisting of the company’s Curibaya and Huilacollo projects.
Auryn’s Canadian assets, including the Eastmain’s assets Eau Claire and Eleonore South Joint Venture would be developed by a new company Fury Gold Mines Limited.
Mike Timmins, former Agnico Eagle VP of Corporate Development, will lead Fury Gold as
President and CEO, the company said.
“Auryn shareholders would receive approximately 0.7 shares of Fury Gold together with one share in each SpinCo for each Auryn share held as of the closing date of the Transaction,” the company said.
According to the agreement, Fury Gold will have approximately 110 million shares issued and outstanding (pre-financing) of which 69% will be owned by former Auryn shareholders and 31% will be owned by former Eastmain shareholders.
“Auryn has spent a considerable amount of time and money developing a tier-one exploration portfolio. The splitting of Auryn should unlock considerable value for Auryn shareholders, and importantly, results in three, commodity-specific exploration companies well-positioned for major discoveries as we head into the bull market,” said Ivan Bebek, executive chairman & director of Auryn.
“The Board of Eastmain strongly endorses the Transaction, as we believe it is in the best interests of all our shareholders and stakeholders. Fury Gold will have the capability and access to capital to develop and finance Eau Claire,” said Laurie Curtis, chairman of Eastmain.