VANCOUVER, Dec. 11, 2014 /CNW/ - Auryn Resources Inc. (TSX-V: AUG, "Auryn" or the "Company"), is pleased to announce that it has completed its previously announced private placement. The gross proceeds of $7,313,300 were raised by issuing 11,251,230 common shares of the Company at a price of $0.65 per share (the "Offering"). The shares sold under the Offering are subject to a four-month hold period.
A total of $96,423 or approximately 1.3% of the gross proceeds was paid in fees incurred in connection with the Offering and no share purchase warrants were issued. The net proceeds of the Offering will be used by the Company to continue its pursuit of mineral property opportunities globally.
Shawn Wallace, President and CEO stated, "The level of interest that we have experienced during this capital raise, particularly in the context of the current market conditions for junior mining companies, is an excellent endorsement of our Company, our strategy and our track record. The increase in the financing allowed the Company to include several new key cornerstone investors.
Our current cash position, coupled with prudent treasury management, will allow the Company to focus on deploying its capital in the most accretive manner possible so that we may once again create value for our shareholders and stakeholders."
The Offering remains subject to receipt of final applicable regulatory approvals, including approval of the TSX Venture Exchange.
On Behalf of the Board
Shawn Wallace President, CEO and Director
Forward Looking Information
This release includes certain statements that may be deemed "forward-looking statements". Forward-looking information is information that includes implied future performance and/or forecast information including information relating to, or associated with, exploration and or development of mineral properties. These statements or graphical information involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company to be materially different (either positively or negatively) from any future results, performance or achievements expressed or implied by such forward-looking statements.
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the Common Shares in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Common Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to, or for the benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from such registration requirements.
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this news release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Auryn Resources Inc.
For further information: regarding Auryn, contact Shawn Wallace - President and CEO, or Jay Adelaar, Manager of Investor Relations, at (778) 729-0600 or visit www.aurynresources.com.