Auryn Resources Inc. struck a deal with a syndicate of underwriters led by Cantor Fitzgerald Canada Corp. to raise US$6.8 million via a bought-deal financing.
The company will offer 5,230,770 shares at US$1.30 apiece, it said March 13.
It will grant the underwriters an overallotment option to acquire a further 784,615 shares at the same price for a period of up to 30 days following closing to raise up to US$1 million.
Auryn, meanwhile, plans to complete a concurrent private placement of flow-through shares for up to US$1.7 million in proceeds.
If the overallotment option is exercised, up to an additional 98,077 flow-through shares may be issued under the concurrent placement.
The company intends to use the proceeds for drilling and exploration at its Committee Bay and Homestake Ridge gold projects in Canada as well as to advance exploration programs at its Huilacollo gold and Sombrero copper projects in Peru. The funds will also be used for general corporate purposes and working capital requirements.
The financing is expected to close by March 23.
