SANTIAGO, CHILE: Auryn Mining Corporation (OTC: AUMC) Chilean subsidiary, Auryn Mining Chile SpA has entered into a financing agreement with Strategic Investments S.A.C., valued at up to $4 million.
This infusion of capital is crucial for the construction and operational launch of a 100-ton per day flotation plant, with production slated to commence in the first quarter of 2025.
Transaction details:
– Loan Provision: Auryn Mining Chile SpA has already received an immediate advance of $500,000, with the potential to increase the total loan amount to $1 million. The loan features a 10-month grace period and will be repayable over five years in equal monthly installments.
– Equity Financing: In addition to the loan, up to $3 million will be provided through an equity investment arrangement. This arrangement includes a preferred dividend mechanism, with dividends capped at $20 million over the next five years.
However, the execution of this financing arrangement is contingent upon the successful completion of a due diligence process by Strategic Investments S.A.C. Both parties aim to ensure that all aspects of the “Fortuna de Lampa” project align with their high standards and expectations.
Maurizio Cordova, CEO of Auryn Mining Corporation, expressed his optimism: “This significant financial commitment from Strategic Investments S.A.C. to our Chilean entity represents a pivotal step toward advancing our Fortuna de Lampa project. It underscores the immense potential within the Altos de Lipangue mining district, and we are well-positioned to make substantial progress in our development efforts.”
Auryn Mining Corporation is dedicated to the responsible and profitable development of mineral resources in Chile. Leveraging innovative and sustainable practices, the company’s subsidiary, Auryn Mining Chile SpA, ensures the responsible stewardship of these valuable resources.
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