VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 14, 2016) -
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Auryn Resources Inc. (TSX VENTURE:AUG) (OTCQX:GGTCF) ("Auryn") and Homestake Resource Corporation (TSX VENTURE:HSR)(FRANKFURT:B6IH) ("Homestake") are pleased to announce that they have entered into a binding letter agreement pursuant to which Auryn will acquire Homestake under a plan of arrangement (the "Arrangement"). The consideration for 100% of the Homestake shares will be the issuance of approximately 3.3 million Auryn shares valued at approximately $8.9 million based on the closing price of Auryn shares of $2.68 per share as at June 13, 2016. Under the proposed Arrangement, Homestake shareholders will receive one Auryn share for each seventeen (17) Homestake common shares held at the time of completion of the Arrangement. The acquisition price represents a premium of 13% to the closing price of Auryn shares as at June 13, 2016, a 31% premium to the volume weighted average price of Homestake shares on the TSX Venture Exchange for the 20-day period prior to June 14, 2016 and a 55% premium based on a 60-day volume weighted average price.