Canadian exploration company Auryn Resources Inc. said Sept. 6 that it has arranged a bridge loan commitment of up to C$6 million with a shareholder to fund the company's near term corporate and working capital needs for about a year.
The loan will consist of two tranches of C$3 million, with the first tranche being advanced on the closing date, currently targeted for Sept. 12. As part of the loan agreement, 500,000 bonus warrants will be issued on the closing of the first tranche with a term of three years from the issuance date. Each warrant is exercisable into one common share of the company at C$2 per share but cannot be exercised until after the maturity date.
The bridge loan will bear interest at 10% per annum and will be repayable no later than one year after the maturity date. However, the bridge loan can be repaid at any time after 90 days of advancement without penalty.
Advancement of the second tranche is conditional upon mutual agreement of the parties.
