For Immediate Release
Auryn Mining Corporation’s Chilean Subsidiary Announces Revised Financing and Services Agreement
Santiago, Chile – December 30, 2024 – Auryn Mining Corporation (OTC: AUMC) announces that its wholly owned Chilean subsidiary, Auryn Mining Chile SpA, has amended its previous financing arrangement with Strategic Investments S.A.C. into a single, integrated agreement. The entire funding is now structured as a $4 million loan at an interest rate of the Secured Overnight Financing Rate (“SOFR”) plus 400 basis points, fully replacing the former loan-and-equity structure. In addition, Auryn Mining Chile SpA has entered into a comprehensive services agreement worth up to $20 million over five years with Ameco Chile SpA, an affiliate of Strategic Investments S.A.C.
Transaction Details
- Loan Provision:
Auryn Mining Chile SpA will receive a $4 million loan at SOFR + 400 basis points. This supersedes the previous arrangement that included a smaller loan plus equity financing. - Services Agreement:
Under this same agreement, Ameco Chile SpA will provide a range of engineering and management services for the Fortuna de Lampa project, including:- Reviewing and optimizing mine plans and water management
- Developing construction and operating budgets
- Conducting training programs to maximize local labor involvement
- Recommending and implementing social programs for community engagement
- Supervising construction and mining activities to ensure environmental compliance
- Leasing mining equipment required for project operations
Executive Commentary
Maurizio Cordova, CEO of Auryn Mining Corporation, stated:
“This unified loan and services agreement is a pivotal step for the Fortuna de Lampa project. It not only streamlines our financing but also secures top-tier expertise from Ameco Chile SpA for efficient development.”
About Auryn Mining Corporation
Auryn Mining Corporation is committed to the responsible and profitable development of mineral resources in Chile. Through its subsidiary, Auryn Mining Chile SpA, the company employs innovative and sustainable practices to ensure responsible stewardship of resources.
Forward-Looking Statements
This news release contains certain forward-looking statements within the meaning of the United States Securities Exchange Act of 1934, as amended. This forward-looking information includes, or may be based upon estimates, forecasts and statements of management’s expectations with respect to, among other things, the completion of transactions, the issuance of permits, the size and quality of mineral resources, future trends for the company, progress in development of mineral properties, future production and sales volumes, capital costs, mine production costs, demand and market outlook for metals, future metal prices and treatment and refining or milling charges, the outcome of legal proceedings, the timing of exploration, development and mining activities, acquisition of shares in other companies and the financial results of the company. There can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially and substantially from those anticipated in such statements. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Inferred mineral resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that mineral resources will be converted into mineral reserves.
Contact Information
Auryn Mining Corporation
https://aurynminingcorp.com
ir@aurynminingcorp.com