Goldcorp invests C$35M in gold explorer Auryn
Last updated 1/15/2017 at Noon
Auryn Resources Inc. Jan. 9 said Goldcorp Inc. has agreed to invest C$35 million to acquire a roughly 12.5 percent interest in the gold exploration company.
The deal with Goldcorp is part of a larger financing that is expected to gross C$18.17 million in cash from direct share subscriptions and C$23 million from the sale of flow-through shares.
Goldcorp has agreed to acquire all of the direct shares and some of the shares offered on a flow-through basis.
Under Canadian tax law, a mineral exploration company that does not generate revenue is able to transfer the income tax benefits generated from the exploration it carries out at qualified Canada projects to individual investors that purchase the flow-through shares.
As a result of the direct and flow-through shares to be sold, Auryn is expected to gross C$41.16 million from the financing.
"We are very pleased to have secured an important investment with an industry leader such as Goldcorp, on favorable terms that minimizes dilution to our shareholders," said Auryn President and CEO Shawn Wallace.
"Auryn is now fully funded to complete one of the most extensive, globally significant exploration programs in 2017.
The program will include a planned 55,000 meters of exploration drilling across six projects in Canada and Peru and expect to make a number of advances that could potentially contribute to the realization of multiple major gold discoveries."