VANCOUVER – Goldcorp has made a strategic investment in Vancouver’s Auryn Resources after which Goldcorp will hold 12.5% of Auryn’s outstanding common shares. Goldcorp has agreed to purchased 9.54 million Auryn shares for $3.67 per share for a total cost of $35.02 million.
Auryn will also issue 4.59 million common shares to third party investors and through a brokered private placement of flow-through shares at a price of $5.01 each. The company’s treasury will enjoy an increase of approximately $41.16 million.
The net proceeds will be used to fund exploration at Auryn’s projects. The company is primarily focused on developing its Committee Bay gold project in Nunavut. Estimated in 2013, the deposit contains 4.32 million indicated tonnes grading 4.91 g/t Au, the bulk of which is recoverable via open pit. The inferred portion totals 5.52 million tonnes at 5.43 g/t Au, about 80% of which would be recovered from underground. The project contains 683,000 oz and 965,000 oz of gold, respectively, in these categories.
Auryn also has high grade gold deposits in British Columbia (Homestake Ridge) and southern Peru.
More information is posted at www.AurynResources.com.