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Auryn makes bid for North Country Gold

 

Last updated 7/5/2015 at Noon



Auryn Resources Inc. and North Country Gold Corp. June 30 reported that they have entered into a letter agreement for Auryn to acquire North Country.

The consideration for all of the North Country shares not already owned by Auryn will be the issuance of about 13.8 million Auryn shares valued at roughly C$20.4 million, based on C$1.48 per Auryn share.

Under the proposed arrangement, North Country shareholders will receive one Auryn share for each 10 North Country common shares held.

The agreement requires directors and officers of North Country to enter into support agreements concurrently with execution of a definitive arrangement agreement to be entered into between Auryn and North Country within 30 days or so.

The support agreements will provide that these key shareholders will, among other things, support the transaction and vote their North Country shares in favor of the arrangement.

The roughly 13.8 million Auryn shares to be issued will constitute about 30.7 percent of Auryn's outstanding shares after completion of the arrangement.

Auryn does not believe shareholder approval will be required in connection with the arrangement, but is confident that if such approval is required by the TSX Venture Exchange, it can be readily obtained.

North Country owns the Committee Bay gold project in Nunavut, subject to a 51 percent earn-in right held by Auryn.

Auryn President and CEO Shawn Wallace said, "The acquisition of North Country gives Auryn 100 percent ownership of the district-scale, high-quality, high-grade Committee Bay gold project.

In the past few months we have undertaken extensive studies on the work already completed by North Country and believe in the opportunity for the discovery of multiple major high-grade gold deposits across the district."

 

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