Auryn Resources to Acquire North Country Gold

Auryn Resources (TSXV:AUG) will acquire North Country Gold (TSXV:NCG) under a plan of arrangement.

As quoted in the press release:

The consideration for 100% of the North Country shares which Auryn does not already own will be the issuance of approximately 13.8 million Auryn shares valued at approximately $20.4 million based on $1.48 per share volume weighted average price of Auryn shares on the TSXV for the 20-day period ending June 29, 2015.Under the proposed Arrangement, North Country shareholders will receive one Auryn share for each ten North Country common shares held at the time of completion of the Arrangement. The acquisition price represents a premium of 65.5% to the volume weighted average price of North Country shares on the TSX Venture Exchange for the 20-day period prior to June 30, 2015 and a 48% premium to the June 29, 2015 closing price of North Country (June 29, 2015 being the last trading day prior to announcement of the transaction).

The letter agreement requires that directors and officers of North Country (representing an aggregate of approximately 4.5% of the issued and outstanding North Country common shares) will enter into support agreements concurrently with execution of a definitive arrangement agreement to be entered into between Auryn and North Country within approximately 30 days. The support agreements will provide that these key shareholders will, amongst other things, support the transaction and vote their North Country shares in favour of the Arrangement.

The approximately 13.8 million Auryn shares to be issued will constitute approximately 30.7% of Auryn’s outstanding shares after completion of the Arrangement. Auryn does not believe approval of its shareholders will be required in connection with the Arrangement but is confident that if such approval is required by the TSX Venture Exchange, it can be readily obtained.

North Country owns a 100% interest in the Committee Bay project located in Nunavut, Canada, subject to a 51% earn-in right held by Auryn (see the joint press release dated February 5, 2015). The Committee Bay project includes 66,160 hectares situated along the Committee Bay Greenstone Belt (the “CBGB”) which occurs approximately 180 km northeast of Agnico Eagle Mines’ Meadowbank mine and extends for more than 300 km.

Auryn president and CEO, Shawn Wallace, said:

The acquisition of North Country gives Auryn a 100% ownership of the district scale, high quality, high grade Committee Bay Gold Project. In the past few months we have undertaken extensive studies on the work already completed by North Country and believe in the opportunity for the discovery of multiple major high grade gold deposits across the district.

Click here to read the Auryn Resources (TSXV:AUG) press release