Auryn Resources to acquire fellow Canadian explorer and spin out Peruvian assets

TSX-listed explorer Auryn Resources has reached a US$90.2 million deal to acquire Eastmain Resources, in a move which will pave the way for a major restructuring of the former into three separate outfits.

The merger with Eastmain will create a Canada-focused company called Fury Gold Mines, while Auryn’s assets in Peru will be spun out into two companies, with one focusing on the Sombrero project and another consisting of the Curibaya and Huilacollo projects.

In Canada, Auryn and Eastmain will combine their portfolios, which include Auryn’s Committee Bay in Nunavut and Homestake Ridge in British Columbia and Eastmain’s Eau Claire and Eleonore South joint venture in Quebec.

Fury Gold is expected to remain listed on the TSX and NYSE and will be led by former Agnico Eagle vice president Mike Timmins. “I am excited by this new opportunity presented by Fury Gold,” Timmins said.

“I look forward to leading a team of experienced and talented professionals that are capable of taking big steps to drive growth.”

Meanwhile Auryn chairman Ivan Bebek said: “The splitting of Auryn should unlock considerable value for Auryn shareholders, and importantly, results in three, commodity-specific exploration companies well-positioned for major discoveries as we head into the bull market.”