Publication of AIM Admission Document (5130E)
April 07 2011 - 7:55AM
UK Regulatory
TIDMAAAM
RNS Number : 5130E
African Aura Mining Inc.
07 April 2011
April 7, 2011
TSX-V: AUR
AIM: AAAM
African Aura Mining Inc.
PUBLICATION of AUREUS MINING INC.'s AIM ADMISSION DOCUMENT
April 7, 2011, African Aura Mining Inc. ("African Aura" or the
"Company"), the TSX-V (AUR) and AIM (AAAM) listed exploration and
development company with divisions focused on iron ore and gold
projects in sub Saharan Africa, is pleased to announce that,
further to its recent press releases regarding the proposed
restructuring of the Company's assets with Aureus Mining Inc.
("Aureus Mining") (the "Arrangement"), Aureus Mining has today
published an AIM admission document, a copy of which is available
for download from the African Aura website, www.african-aura.com.
From 13 April 2011 the Admission Document will also be available
from the Aureus Mining website, www.aureus-mining.com.
Definitions used in this announcement have the same meaning as
those in the Admission Document unless the context requires
otherwise.
About Aureus Mining Inc.
Aureus Mining is a new company incorporated as "Aureus Mining
Inc." under the CBCA on 1 February 2011 in order to facilitate the
Arrangement.
The completion of the Arrangement will result in the transfer
of, among other things, all of African Aura's gold assets, the 14%
holding in Stellar Diamonds Plc and cash and cash equivalents equal
to 40% of African Aura's total cash balance immediately prior to
the Effective Time (estimated as being approximately US$10.6
million based on information available at 6 April 2011) to Aureus
Mining in exchange for the Aureus Mining Common Shares to be
received by Participating Shareholders in accordance with the terms
of the Plan of Arrangement.
Aureus Mining will be engaged in the exploration and development
of gold deposits in highly prospective and under-explored areas of
sub-Saharan Africa. Upon the completion of the Arrangement, Aureus
Mining's activities will initially be concentrated on the
exploration and development of the New Liberty Gold Project in
Liberia. Being an exploration and development company without
producing mines, Aureus Mining will have no revenue and will have
to rely on debt and/or equity financings as its major source of
funding.
Following the completion of the Arrangement, Aureus Mining's
strategy to increase shareholder value will be to: (i) develop the
New Liberty Gold Project into a mine; and (ii) progress exploration
on promising assets both in Liberia and Cameroon.
The first phase of this strategy will be the completion of the
work programme outlined in the New Liberty Technical Report
relating to the New Liberty Gold Project. This work programme
includes mineral resource definition drilling as well as additional
drilling to determine potential strike extensions to the deposit at
the New Liberty Gold Project. The budget to achieve this programme
is US$6.3 million, and is inclusive of management, labour,
equipment, sampling, assaying, data analysis and an environmental
and social impact assessment. It is expected that the work
programme will be funded with the cash which forms part of the
Transferred Assets.
Whilst Aureus Mining is expected to have sufficient funds for
its current development plans, the Board is exploring the
opportunity to undertake an equity fundraising in the near term
with a view to accelerating its development plans and broadening
Aureus Mining's shareholder base. Any further fundraising will be
subject to prevailing market conditions and the availability of
funds.
African Aura Mining Inc.
Luis da Silva, President & CEO
Tel: +44 (0) 20 7257 2930
Aureus Mining Inc.
David Reading, President & CEO
Tel: +44 (0) 20 7257 2930
Evolution Securities Limited
Jeremy Ellis/ Neil Elliot / Tim Redfern
Tel: +44 (0) 20 7071 4300
Pelham Bell Pottinger
Charles Vivian / James MacFarlane
Tel: +44 (0) 20 7861 3232
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,
including the completion of the proposed Arrangement and the terms,
timing and consequences relating thereto as well as Aureus Mining's
proposed exploration and development plans; the possible
development of the New Liberty Gold Project into a mine and the
proposed increase in Aureus Mining's resource base, and resource
expansion; progressing exploration on assets in Liberia and
Cameroon; and the anticipated completion of the work programme
outlined in the New Liberty Technical Report and the budget and
expected funding thereof. 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; that the cash forming part
of the Transferred Assets will be sufficient for Aureus to complete
its proposed work programme; Aureus Mining's ability to raise funds
on favourable terms or at all; 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 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; the inability
of Aureus Mining to raise further funds on favourable terms or at
all; 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 February 28,
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.
Ends
This information is provided by RNS
The company news service from the London Stock Exchange
END
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