Ivan Bebek Explanations about financing Here :
Ivan Bebek Explanations "Bill Powers: Ivan, welcome back to the show and could you start off by explaining this recently announced, bought deal. There’s some confusion or ambiguity perhaps around how should you value Auryn in light of this financing?
Ivan Bebek: Hi Bill. Thanks. Great to be back. So yes, it’s been busy. Spent a lot of time preparing for this amazing event for shareholders to split Auryn into three companies. And as you mentioned to acquire a Canadian asset to strengthen our Canadian portfolio and eliminate the seasonality so we can drill year round, we announced the financing yesterday for 22 and a half million dollars, which fully funds the new company, which is called Fury Gold Mines. It will fully fund 50,000 meter drill program, which will start in November, which is spectacular. But the confusion lies within the pricing. A lot of people thought we priced this financing at CAD$2 for Auryn, which we did not. That’s entirely false. We are not adding any shares to the Auryn registry to do this funding. They’re actually being done on the new Fury structure, which is suggested to have 110 million shares out.
The financing was for 22 and a half million. And we issued a total of seven and a half million shares, which gives the average price of that financing $3 per share. So it’s an incredible start in terms of being funded for a 50,000 meter drill program and a year of working capital. I think the challenges around that financing for us was no shortage of interest. But because it’s a sub receipt, because it’s picking part of the value out of the Auryn share price and people have to do the math. I know there was a lot of reluctance by some very good funds to tie up capital in a sub-receipt financing that has a chance because there’s a vote involved on the acquisition of Eastmain to drag out for an extra month or two, which obviously we all know it’s a very volatile quarter with the election coming up in November.
So a lot of really high quality funds could not make it into the financing for their own restrictions or comfort level of the mechanism we could only do, which is a sub-receipt financing. But the people we did get in the financing are some of the best shareholders we could have asked for in terms of longterm, big growth focused investors of real quality. And I don’t want to name them right now in this announcement, but I’m sure you hear about our share structure once that company is trading. But it came together really well in the end. We took less money than we were being offered to take on the bought deal financing because we were not happy with the valuation. We understand the mechanism was confusing. Gold had come down from nearly $2,100 an ounce to low $1900s an ounce during our efforts to do this funding.
So in the spirit of being anti-dilutive and wanting to create a tremendous amount of currency or share price movement in Fury, we took the tighter or more adequate funding versus over financing at these lower prices. So we think there’ll be a lot of people that miss this funding that we’ll be able to participate once it’s trading. We think that the 50,000 meter drill program will be a tremendous catalyst for Fury right out the gate. And right now we’re speculating, it starts a few weeks after the vote, which is November. The vote is going to be October 5th. And once that gets started with the $2,000 gold backdrop, I mean, there’s so much to add in that deposit. I think it’s going to be really exciting for shareholders going forward."
And insteresting :
"You can still buy Fury Gold Mines by buying Eastmain shares, which are ironically trading at financing price, which I don’t fully understand because now the company’s funded. They should see a lift here in the near term."