TIDMAAAM
RNS Number : 0844E
African Aura Mining Inc.
01 April 2011
NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION
TO US NEWS WIRE SERVICES.
TSX-V: AUR
AIM: AAAM
April 1, 2011
AFRICAN AURA MINING INC.
("African Aura" or the "Company")
Publication of 2010 Accounts
The Board of African Aura is pleased to release the Audited
Consolidated Financial Statements of the Company for the year
ended, December 31, 2010 which should be read in conjunction with
the accompanying Management Discussion and Analysis. These
documents have been filed on Sedar and are available on the
Company's website http://www.african-aura.com or at
www.sedar.com.
Luis da Silva, President and CEO of African Aura commented:
"The Board believes that the current value of the Company does
not recognise fully its gold and iron ore assets. As a consequence
management has decided to demerge its gold asssets in order to
address this undervaluation. Pursuant to the Arrangement the
Company (which will be renamed "Afferro Mining") will develop the
iron ore assets, while a new company, "Aureus Mining", will develop
the gold assets. The restructuring plans are nearing completion
with the next milestone in the restructuring process being the
special meeting of shareholders scheduled for April 5, 2011.
Assuming that shareholders vote in favour of the resolutions, the
arrangement is expected to complete on April 13, 2011. Pursuant to
the Arrangement, the last day of dealings to have the right to
receive Aureus shares is April 7, 2011. At that date each
shareholder of African Aura, will be entitled to receive one new
common share in Afferro and one common share in Aureus Mining for
each common share held of African Aura.
Meanwhile, at project level, the Putu Iron Ore Project in
Liberia, the Company announced in February 2011 the increase in the
resource to 2.4Bt at 34% iron. The 62,000 metre resource
delineation drilling programme is continuing which will be
completed in first half 2011. Various studies are underway as part
of the pre-feasibility including an environmental baseline study,
satellite imagery, topographic data study and most importantly how
the project can be accelerated.
The Nkout Iron Ore Project where the Company announced on
February 1, 2011, a 1Bt maiden resource is being fast tracked and
management is targeting a potential 4Bt iron ore resource. The
maiden resource at Nkout was achieved at a modest cost of $4.4
million which represents a significant return on investment.
Following the upgrade in the resource estimate at New Liberty,
together with the Preliminary Economic Assessment ("PEA") which was
released on December 14, 2010, the focus has now shifted to
completing the definitive feasibility study ("DFS") by the end of
2011. The PEA demonstrates the minimum value achievable for Aureus
providing a net present value of $234 million using $1,100/oz gold
price and a 10% discount rate. The DFS at New Liberty will include
further drilling (up to 15,000m) to identify more ounces of gold
and upgrade the resource to reserve status. The environmental and
social impact assessment is on schedule to be completed by Q3,
2011.
The achievements outlined above, have significantly increased
the resource base of the Company which in turn has had a positive
impact on the share price and market capitalisation of the Company.
When writing the Q3 MD&A I reported that the market
capitalisation of African Aura had almost doubled from Cdn$92
million to Cdn$177 million. At the time of writing this MD&A
the market capitalisation of African Aura had more than doubled
again, to Cdn$383 million and reached a high of Cdn$416 million in
mid February 2011. The Board of the Company is focused on
continuing to increase shareholder value by unlocking the potential
of its assets.
The Company is well positioned with cash in hand and robust gold
and iron ore assets which are planned to be split into separately
listed companies in April 2011 in order to deliver further value to
its shareholders during the year ahead."
On behalf of the Board of African Aura Mining Inc.
Luis da Silva
President and CEO
About African Aura Mining Inc.
African Aura is an established exploration and development
company listed on the TSX-V (AUR) and London's AIM (AAAM). The
Company operates two divisions that are intended to be split into
separate listed companies becoming effective, subject to
shareholder, regulatory and other approvals in April 2011:
- The iron ore division, to be renamed Afferro, includes its
38.5% interest in the 2.4Bt Putu iron ore project in Liberia, which
is subject to a resource expansion drilling programme and moving
through pre-feasibility managed by joint venture partner Severstal
Resources (the mining division of London and Moscow listed OAO
Severstal). In September 2010, Putu was granted a 25 year renewable
Mineral Development Agreement by the Government of Liberia. The
division also includes a 100% interest in the Nkout 1Bt iron ore
project and surrounding iron targets in Cameroon which is subject
to a resource expansion drilling programme targeting 4Bt.
- The gold assets, to be held in "Aureus Mining Inc." when
listed independently, include the New Liberty gold deposit in
western Liberia which has a resource of 1.51 million ounces of gold
grading 3.78 g/t (comprising 5,599,000 tonnes grading 4.17 g/t in
the indicated category and 7,040,000 tonnes grading 3.40 g/t in the
inferred category) which is being advanced through a bankable
feasibility study, and the proximal Ndablama, Weaju, Silver Hills
and Gondoja gold projects all within the Company's Bea Mountain 25
year renewable Mineral Development Agreement.
In addition, the Company has a 14% interest in AIM-listed
diamond producer Stellar Diamonds Plc (AIM: STEL,
www.stellar-diamonds.com). It is proposed that, following
completion of the Arrangement, this holding will be held by Aureus
Mining Inc.
The Company has a highly motivated and experienced team with a
track record of discovering mines and taking projects through
development and into production. As a pioneer, African Aura has
attracted some excellent strategic partners and shareholders,
always with the objective of preserving or enhancing shareholder
value. For further information on the Company you are invited to
visit its website at www.african-aura.com, or SEDAR's website at
www.sedar.com, or contact one of the following:
African Aura Mining Inc.
Luis da Silva, President & CEO
Tel: +44 (0) 20 7257 2930
Evolution Securities Limited
Neil Elliot/ Tim Redfern
Tel: +44 (0) 20 7071 4300
Pelham Bell Pottinger
Charles Vivian / James MacFarlane
Tel: +44 (0) 20 7861 3232
Qualified Person
Howard Baker has some ten years experience in the exploration,
definition and mining of iron ore Mineral Resources. Howard Baker
is a full-time employee of SRK Consulting (UK) Ltd, an independent
Consultancy and has sufficient experience which is relevant to the
style of mineralisation and type of deposit under consideration,
and to the type of activity which he is undertaking to qualify as a
Qualified Person in accordance with NI43-101 and a Competent Person
as defined in the June 2009 Edition of the AIM Note for Mining and
Oil & Gas Companies. Howard Baker consents to the inclusion in
the announcement of the matters relating to iron ore in the form
and context in which they appear and confirms that the information
is accurate and not false or misleading.
Mr C G Arnold, BSC(Hons),MSc, MAusIMM (CP) of AMC Consultants
(UK) Limited consents to the inclusion in the announcement of the
matters relating to gold in the form and context in which they
appear and confirms that the information is accurate and not false
or misleading.
Forward-Looking Information
This press release contains certain forward-looking information.
All information, other than information regarding historical fact
that addresses activities, events or developments that the Company
believes, expects or anticipates will or may occur in the future is
forward-looking information. Forward-looking information contained
in this press release includes, but may not be limited to: the
future plans and objectives of African Aura and Aureus Mining Inc.,
including the completion of the proposed Arrangement. The foregoing
and other forward-looking information contained in this press
release reflects the current expectations, assumptions or beliefs
of African Aura based on information currently available to African
Aura. With respect to the forward-looking information contained in
this press release, African Aura has made assumptions regarding,
among other things: general business, economic and mining industry
conditions; the completion of the Arrangement, including the
receipt of all necessary approvals to proceed therewith; the
Company's ongoing exploration and development activities; and it
has also been assumed that no material adverse change in the price
of precious and/or base metals occurs and no significant events
occur outside of African Aura's normal course of business.
Such forward-looking information is subject to a number of risks
and uncertainties that may cause actual results or events to differ
materially from current expectations, including: delays in
obtaining, or a failure to obtain, required shareholder, regulatory
and/or court approvals; the Company's inability to complete the
Arrangement or obtain a favourable confirmation from the Canada
Revenue Agency regarding the tax consequences of the Arrangement;
risks normally incidental to exploration and development of mineral
properties; adverse changes in precious and/or base metal prices;
and future unforeseen liabilities and other factors including, but
not limited to, those listed under "Risk Factors" in the management
information circular of the Company dated March 31, 2011 and the
Company's Annual Information Form dated April 30, 2010, copies of
which are available under the Company's profile on SEDAR at
www.sedar.com.
Forward-looking information speaks only as of the date on which
it is made and, except as may be required by applicable law,
African Aura disclaims any obligation to update or modify such
forward-looking information, either as a result of new information,
future events or for any other reason.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accept responsibility for the adequacy or
accuracy of this release.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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