AURYN Mining Chile SpA agreed to sell its more than 10,500 hectares of claims in the Altos de Lipangue mining district in Chile to Cerro Dorado Inc. in exchange for 95% of the issued and outstanding Cerro shares.
The transaction will see AURYN acquiring 6,650,000,000 shares of Cerro, according to a Dec. 15 release.
AURYN will now work with the Cerro management to assemble a management team and board.
The company plans to launch a massive exploration program on the Altos de Lipangue gold-copper claims including entering joint venture agreements with other firms to explore the property.
AURYN, meanwhile, will focus on becoming an active gold producer by reopening the Fortuna gold mine and actively exploring and mining the gold veins found in the Larissa tunnel.
The parties will work toward consolidating the capital structure, changing the name of the company and moving to a higher exchange or tier on the OTC.