Each one in plain English, with the numbers worked through for a shareholder.
4 Apr 2019capital raising announcement▲ Good
The March placement was increased and closed at C$5,255,000 rather than the C$3.5 million announced, on 3,284,375 shares at C$1.60, of which insiders took 596,875.
What it means for a shareholder
3.3m new shares at C$1.60 to raise about C$5.3m. That's 3.7% dilution: every existing holder's slice gets 3.7% smaller. If you held C$1,000 of shares (625 at the issue price), your slice goes from 0.000727% to 0.0007% of the company. To keep it you'd need 24 more shares - about C$38 at the issue price.
Extended the Fierrazo trench by a further 48 metres of 0.49% copper and 0.04 g/t gold, taking the continuous channel-sampled width to 232 metres of 0.47% copper and 0.13 g/t gold, with a 40-metre core at 1.23% copper. Still surface sampling only.
Arranged a $3.5 million non-brokered placement of about 2,187,500 shares at C$1.60 to fund surface exploration at Sombrero, with insiders expected to take part.
What it means for a shareholder
2.2m new shares at C$1.60 to raise about C$3.5m. That's 2.5% dilution: every existing holder's slice gets 2.5% smaller. If you held C$1,000 of shares (625 at the issue price), your slice goes from 0.000727% to 0.000709% of the company. To keep it you'd need 16 more shares - about C$26 at the issue price.
Filed an independent technical report on the Sombrero project by APEX Geoscience. Section 14 of the report, mineral resource estimates, is empty - Sombrero had no resource of any category, and the report's comparisons are to neighbouring deposits such as Las Bambas and Tintaya rather than to anything Auryn owns.
First trench at Fierrazo returned 184 metres of 0.57% copper-equivalent, including 20 metres of 1.50% copper and 0.04 g/t gold, 24 metres of 0.70% copper and 0.09 g/t gold, and 20 metres of 0.32% copper with 0.99 g/t gold. These are surface channel samples across skarn, not drill intercepts, but the width is what makes the target credible.
The machine-learning exercise produced twelve targets at Committee Bay, two of them east and west extensions of the existing Three Bluffs deposit and several under shallow lakes and glacial cover, plus a third 15-kilometre structure alongside the known Three Bluffs and Aiviq-Kalulik trends. Targets, not results.
Restarted trenching at Sombrero, beginning on the Fierrazo claims optioned from Aceros in December and moving through the Nioc, Good Lucky, Totora and Milpoc targets. The company describes Sombrero as never drilled.
Hired Computational Geosciences to run a deep-learning algorithm over the Committee Bay gold belt in Nunavut to pick drill targets - a targeting exercise, with no assays or drilling reported. Committee Bay is 300 kilometres of till-covered greenstone where conventional methods had not converted extensive high-grade surface occurrences into a discovery.
Surface rock samples at the Milpoc prospect, 12 kilometres south of Sombrero, returned copper from 0.1% to 8.45% and silver from 0.06 to 101 g/t over a zone 1.2 kilometres long and 500 metres wide. These are grab and outcrop samples from red-bed sediments, not drill intercepts, so they show a target rather than a deposit.
Auryn Resources optioned three mineral concessions inside its Sombrero copper-gold project in southern Peru from Peruvian steelmaker Corporacion Aceros Arequipa. Exercising would form an 80:20 joint venture combining Aceros's 520 hectares with 4,600 of Auryn's own, tidying up the ground under the Sombrero Main target ahead of a first drill programme planned for 2019.
