Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Aureus Mining Inc. is pleased to announce that it has entered into an underwriting agreement for C$35.1 (Canadian Dollars) million with a syndicate of underwriters led by RBC Capital Markets and GMP Securities L.P. and including Clarus Securities Inc., Jennings Capital Inc. and Raymond James Ltd. (collectively, the “Underwriters”), with respect to its previously announced offering of the Company’s common shares (the “Offering”). Pursuant to the Offering, the Company will issue 27,000,000 common shares at a price of C$1.30 (c.£0.83) per common share and receive aggregate net proceeds of C$32,994,000 (c.£21.0 million).
The closing of the Offering is expected to occur on or about May 19, 2011, or such other date as the Company and the Lead Underwriters may agree in writing (the “Closing Date”).
In addition, the Company has granted to the Underwriters an option (the “Over-Allotment Option”) to purchase, at the Underwriters’ election, up to an additional number of common shares that is equal to 15% of the number of common shares sold under the Offering. Such Over-Allotment Option is exercisable, in whole or in part, at any time during the 30 day period immediately following the Closing Date.
A final prospectus containing important information relating to the Offering will be filed with the securities commissions or similar authorities in each of the provinces and territories of Canada except Québec. The Company has also applied for admission of the common shares to be issued pursuant to the Offering to trading on AIM. It is expected that such admission will become effective and that dealings will commence on May 19, 2011. The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including regulatory approval and the approval of the Toronto Stock Exchange.
The Company intends to use the net proceeds of the offering, together with its existing cash resources to, among other things, complete a definitive feasibility study on the New Liberty Gold Project and undertake the priority drilling and follow-up exploration programs with the Bea Mountain mining licence as well as exploration work in Cameroon .
Commenting on the offering, David Reading, Chief Executive Officer of Aureus Mining, said: “The fund raising received a strong endorsement from a broad range of quality investors who recognise the potential of the Company’s assets and growth strategy. We are delighted by this encouraging response, which will provide additional liquidity in the Toronto and London markets, as well as providing sufficient working capital to significantly advance the development of our New Liberty Gold Project and focused exploration programs in Liberia and Cameroon.”
Read the full news release here. Photo of New Liberty Gold project is from Aureus Mining.
