Ivan Bebek joined us to provide an update on the completed Auryn Resources transaction (sponsor). Here’s how it worked. Auryn Resources acquired Eastmain Resources and became Fury Gold Mines. At the same time it spun off its Peruvian assets into two new companies, Sombrero Resources and Tier One Metals.
Shareholders of Auryn Resources (on the record date) now own 1 share in each of the 3 new companies. Fury Gold Mines began trading last week. Sombrero and Tier One will begin trading in early 2021. Valuation is tentative, because Sombrero and Tier One are currently private companies and for now have no market listings. (Due to US tax considerations). Several analysts are following the company and have issued price targets as high as $5 per share for Fury alone, well above it’s current price.
Not to worry. All the companies are well capitalized and moving quickly ahead with their business plans. Fury has a fully funded 50,000 meter drill program soon to commence. Ivan is quite confident that the program will yield big results and this should mean big profits to shareholders. News will be flowing shortly.
Once the Peruvian companies start trading, the true value of the transaction will become apparent to all. It’s a case of the parts being worth far more than the whole. As shareholders, we couldn’t be happier with the way things are progressing.
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