Representatives from AURYN Mining Chile SpA (AURYN) and Auryn Holdings Corporation (AHC) were present at the Cerro Dorado, Inc. (Cerro) shareholder meeting today in Salt Lake City, Utah. AURYN and AHC’s attendance was in support of AHC’s meeting Cerro’s cash call as an AURYN shareholder and AHC’s oral offer to provide a longer-term solution to the issue.
AHC outlined an offer to Cerro at the meeting, subject to further due diligence by both parties. As part of the offer:
- AHC will continue to hold the loan satisfying the $300,000 cash call payment that Cerro owes AURYN.
- The loan will have a 0% interest loan payable in full on December 31, 2021.
- The loan payment date can be extended upon the agreement of both parties.
- Should the 5,000,000 shares of AURYN that Cerro owns become publicly tradable, the loan converts to an interest only balloon note with a four-year term and a simple interest rate of 4% annually.
- In consideration of this loan, the existing 500,000 preferred shares of Cerro that carry 1000-for-1 voting rights will be transferred to AHC.
Cerro’s shareholders unanimously accepted the offer. AHC expects the due diligence to be completed and a contract signed on or before June 30, 2017.
Furthermore, Cerro appointed Italo Volante Gomez, Raul Del Solar, Kevin Tupper and Gary Goodin as directors, and accepted the resignations of Cerro’s present directors subject to completion of the contract with AHC.