8 Sept 2020business combination● Neutral
Mailed the proxy circular for the 5 October meeting at which securityholders vote on the Peruvian spin-outs and the Eastmain acquisition, with the spin-out record date set for the expected 9 October closing.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
3 Sept 2020asset acquisition disposition▲ Good
Exercised early the 2016 option over six Sombrero concessions held by Alturas Minerals, cutting the final payment from US$5.0 million to about US$3.0 million - settled with 1.1 million Auryn shares valued at C$2.90 and US$621,466 in cash. Done six weeks before the Peruvian assets are spun out, so the buyer of the cleaned-up title is effectively the new spin-out company.
31 Aug 2020capital raising announcement▲ GoodMajor
Arranged a C$22.5 million bought-deal placement of 7.5 million subscription receipts, which convert to shares only when the Eastmain deal closes. Completing it is a stated condition of that deal, so the financing is the gate the whole reorganisation runs through.
30 July 2020business combination▲ GoodMajor
Agreed to split the company in two and buy another: Auryn will spin its Peruvian projects into two new companies - Sombrero, and Curibaya with Huilacollo - then acquire Eastmain Resources and rename itself Fury Gold Mines. Auryn holders get 0.7 of a Fury share plus one share in each spin-out per Auryn share; Eastmain holders get 0.117 of a Fury share each, a C$121 million offer worth about C$0.42 an Eastmain share after adjusting for the spin-out value, a 137% premium. Fury emerges with about 110 million shares, 69% held by former Auryn holders and 31% by Eastmain's, holding Committee Bay, Homestake Ridge, Eau Claire and the Eleonore South joint venture, led by former Agnico Eagle executive Mike Timmins.
22 July 2020resource reserve update● Neutral
Refiled the Homestake Ridge technical report, amended and restated 24 June 2020 from the 29 May version.
17 June 2020drilling progress report● Neutral
Peru's government cleared the company to resume work at Sombrero and Curibaya after COVID-19 restrictions. Management acknowledged the pandemic had lengthened the permitting process - the Sombrero drill permit, expected in early 2020, was still outstanding.
29 May 2020resource reserve update● Neutral
Filed the MineFill technical report carrying the Homestake Ridge resource update and economic study, effective 29 May 2020.
20 May 2020drilling progress report● Neutral
Reworked the Committee Bay targeting by separating the geophysical conductivity signatures of high-grade from low-grade mineralisation, reviving targets where past drilling had never explained the high-grade surface occurrences. A targeting update, not assays - and an implicit admission that four years of drilling on the belt had not yet found the source.
15 Apr 2020resource reserve update▲ GoodMajor
First economic study on Homestake Ridge in British Columbia: after-tax net present value of US$108 million and a 23.6% return at US$1,350 gold, on US$88 million of pre-production capital, a 13-year life at 900 tonnes a day producing 590,040 gold-equivalent ounces at all-in sustaining costs of US$670 an ounce. The accompanying resource update - 736,000 tonnes indicated at 7.02 g/t gold and 5.5 million tonnes inferred at 4.58 g/t - carries higher grades on fewer tonnes than the 2017 estimate, with total metal roughly unchanged. Four-fifths of the ounces are still inferred.
10 Mar 2020capital raising announcement● Neutral
Material change report for the 27 February second allotment of C$4.9 million at C$1.60, bringing the February raise to C$15 million.
28 Feb 2020drilling result▲ Good
Mapping and sampling found a new Curibaya zone a kilometre northeast of earlier work grading up to 946 g/t silver and 1.96 g/t gold, plus a loose float sample 800 metres further out at 42.6 g/t gold and 9,180 g/t silver. A float sample has no known source, so it is a pointer rather than a measurement; the mapped alteration system is now 4 by 4 kilometres.
27 Feb 2020capital raising announcement▲ GoodMajor
A second allotment of the same placement closed on 3,062,500 shares at C$1.60 for C$4.9 million with no commissions, taking the February total to C$15 million on 9,375,000 shares. The company said it was expecting drill permits for two Peruvian projects that year.
What it means for a shareholder
3.1m new shares at C$1.60 to raise about C$4.9m. That's 3.4% dilution: every existing holder's slice gets 3.4% smaller. If you held C$1,000 of shares (625 at the issue price), your slice goes from 0.000727% to 0.000702% of the company. To keep it you'd need 22 more shares - about C$35 at the issue price.
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10 Feb 2020drilling progress report▲ GoodMajor
Received the DIA environmental permit from Peru's Ministry of Energy and Mines for Sombrero, covering 1,031 hectares and allowing up to 33 holes from 23 platforms at the Ccascabamba Sombrero Main target. It is not yet a licence to drill: the Inicio de Actividades authorisation, which includes a formal community consultation with Huanca Sancos, was only filed the week before.
6 Feb 2020capital raising announcement● NeutralMajor
Closed the C$10.1 million placement at C$1.60 on 6,312,500 shares, insiders taking 271,875, and completed the bridge loan amendment - the C$3 million principal plus C$123,334 of accrued interest now convertible into up to 1,952,084 shares at C$1.60. The bridge loan that began as a working-capital borrowing five months earlier ends as dilution.
21 Jan 2020capital raising announcement● NeutralMajor
Arranged a C$10 million placement of about 6.3 million shares at C$1.60 and simultaneously agreed to convert the September bridge loan: the lender may turn the drawn C$3 million into shares at C$1.60, the company can force conversion if the stock holds C$2.50 for five days, and the interest rate drops to 5%. The debt is being turned into equity rather than repaid.
17 Jan 2020drilling progress report▲ Good
Uranium-lead dating of five samples from diorite sills at Sombrero returned ages of 38.85 to 40.47 million years, placing the mineralisation in the same Eocene event that produced Las Bambas and extending that belt over 100 kilometres further west. Supports the geological thesis; adds no metal.
14 Nov 2019drilling result▲ GoodMajor
More Curibaya surface samples, up to 7,990 g/t silver, 17.65 g/t gold and 6.97% copper, extending the high-grade zone 1.5 kilometres west of the area reported in October. Curibaya has overtaken Sombrero as the company's headline story within six weeks of its first sampling.
28 Oct 2019drilling result▲ GoodMajor
First rock sampling at Curibaya's Sambalay and Salvador concessions returned more than 20 samples above 200 g/t silver, several over 1,500 g/t and gold up to 7.67 g/t, across a 1.5 by 3 kilometre alteration system. Surface samples in a belt that hosts Cerro Verde, Cuajone, Toquepala and Quellaveco - proximity is not a deposit, but it explains why the market paid attention.
17 Oct 2019drilling progress report▲ Good
Staked a further 8,500 hectares at Sombrero North, called Macha Machay, where stream-sediment copper runs 1.5 to 3.5 times higher than at the Sombrero Main, Nioc and Good Lucky targets. Land keeps growing while the drill permit does not arrive.
9 Oct 2019drilling progress report● Neutral
Began work at the wholly owned Curibaya project in Tacna province, southern Peru, upgrading road access before mapping and rock sampling on the newly acquired Sambalay and Salvador concessions, where historical sampling ran up to 13.5% copper, 23.6 g/t gold and 14,180 g/t silver. A drill permit application was planned for the first quarter of 2020.
30 Sept 2019drilling result▲ Good
First-pass mapping and grab sampling at the Ccello prospect in the southern Sombrero district returned silver up to 981 g/t from massive silica structures along a 500-metre zone inside a 2 by 1.5 kilometre alteration system. Grab samples are selective by nature; this identifies a system, not a grade.
19 Sept 2019debt financing▼ BadMajor
Closed a bridge loan facility of up to C$6 million, of which the first C$3 million tranche was drawn for general working capital; the second tranche needs both sides to agree. The first borrowing in the record, and it is funding overheads rather than a project - three months after paying C$3.00 a share for flow-through money.
17 July 2019capital raising announcement● Neutral
Material change report for the 11 July closing of the C$1,900,002 flow-through placement.
11 July 2019capital raising announcement● Neutral
Closed the flow-through placement, issuing 633,334 shares at C$3.00 for C$1.9 million to fund the Committee Bay programme.
What it means for a shareholder
633,334 new shares at C$3.00 to raise about C$1.9m. That's 0.731% dilution: every existing holder's slice gets 0.731% smaller. If you held C$1,000 of shares (333 at the issue price), your slice goes from 0.000388% to 0.000385% of the company. To keep it you'd need 2 more shares - about C$6 at the issue price.
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8 July 2019drilling spud● NeutralMajor
Started the roughly 3,000-metre Committee Bay drill programme on targets chosen by the machine-learning exercise, the first test of whether that approach finds anything. No results release from this programme is in the cached record; the quarterly filed four months later describes 2,700 metres drilled and 'a new gold-bearing hydrothermal system' without quoting a single intercept.
27 June 2019capital raising announcement▲ Good
Arranged a C$1.9 million flow-through placement of 633,334 shares at C$3.00 - nearly double the C$1.60 paid in March, because flow-through shares carry a tax deduction - to pay for the Committee Bay summer drilling.
What it means for a shareholder
633,334 new shares at C$3.00 to raise about C$1.9m. That's 0.731% dilution: every existing holder's slice gets 0.731% smaller. If you held C$1,000 of shares (333 at the issue price), your slice goes from 0.000388% to 0.000385% of the company. To keep it you'd need 2 more shares - about C$6 at the issue price.
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18 June 2019drilling progress report● Neutral
Will drill about 3,000 metres at Committee Bay in July, testing four of the twelve machine-learning targets, concentrated on the Aiviq and Kalulik zones where 2018 holes hit sulphidised iron formation. The release also notes it is still waiting on drill permits at Sombrero, which will take another eight months to arrive.
13 June 2019drilling result▲ GoodMajor
Assays from the eight historical Fierrazo holes returned copper-gold in every hole, including 116 metres of 0.42% copper and 0.24 g/t gold, 90.4 metres of 0.48% copper and 0.05 g/t gold, and 51 metres of 0.43% copper and 0.16 g/t gold. This is the first real evidence that the 232-metre surface intercept continues at depth, obtained by re-assaying core someone else had drilled for iron.
4 June 2019drilling result▲ Good
Rock samples defined two new targets at the Homestake Ridge project in British Columbia, Bria 10 kilometres northeast and Kombi 3.5 kilometres south of the existing resource, with grades up to 11 g/t gold and 448 g/t silver. The release restates the standing resource: 125,000 ounces at 6.25 g/t gold and 1 million ounces at 47.9 g/t silver indicated, 932,000 ounces at 4 g/t gold and 21.2 million ounces at 90.9 g/t silver inferred.
29 Apr 2019drilling progress report▲ Good
Obtained access to core from eight holes totalling 988 metres drilled at Fierrazo in 2013 by a supplier to Aceros, which had been looking for iron rather than copper. Sampling that core gives the first look below the 232-metre surface channel without paying for a drill.