Increases Financial Flexibility and
Strengthens Project Management Team
TORONTO, April 18, 2017 /CNW/ - AuRico Metals Inc.
(TSX: AMI), ("AuRico" or the "Company") is pleased to announce
that it has replaced its restricted cash on deposit with a surety
bond, resulting in an increase of net cash available to the Company
of approximately C$11.2 million.
Additionally, AuRico has further strengthened its project
management team with the recent hiring of Sean Masse as Mining Project Manager, and
Mike Padula as Surface Construction
Project Manager for the Kemess Underground Project.
Increased Financial Flexibility
Since inception, the Company has held C$18.7 million of cash on deposit as security for
future reclamation and closure activities at the Kemess site. On
April 18, 2017, the AuRico replaced
this restricted cash on deposit with a surety bond and a total of
C$18.7 million in cash on deposit was
released to the Company. The Company has provided security to the
surety bond underwriter in the form of a C$7.5 million letter of credit, collateralized
with cash. As a result, the AuRico's available cash balance has
increased by C$11.2 million. The
Company has indemnified the surety bond underwriter for any
reclamation or closure costs due at Kemess. The Company's guarantee
under the surety bond expires on completion of these closure
obligations.
Management Update
AuRico is pleased to announce the appointments of Sean Masse, P. Eng., to the position of Mining
Project Manager and Mike Padula,
PMP, to the position of Surface Construction Project Manager. Both
individuals will be reporting directly to John Fitzgerald, P. Eng., AuRico Metals' Chief
Operating Officer.
Mr. Masse brings over 16 years of varied mining industry
experience to the AuRico Metals team. Working for both owners and
contractors most of his experience is in mining project delivery.
Mr. Masse was a senior member of the team that successfully brought
New Gold's New Afton panel cave mine into production. As both mine
superintendent and mine manager at New Afton, Mr. Masse was
involved in all aspects of the mine's construction and achievement
of full and steady production. Most recently Mr. Masse has been
working to build Cementation Canada's business in Western Canada.
Mike Padula is a 29 year project
management veteran having worked on numerous development projects
across Canada. Mr. Padula most recently worked as the Project
Manager for Victoria Gold for the
Eagle Gold Project in central Yukon and the Manager of mining wastes and
water for MMG Limited's Izok Corridor Project in Nunavut. Mr. Padula was part of the senior
management group for both AMEC Americas (now AMEC Foster Wheeler)
and De Beers Canada on the Snap Lake Diamond Project which advanced
the exploration project through to construction. Mr. Padula
has also worked on a variety of mining and industrial projects for
AMEC Americas and other consulting/construction companies.
Chris Richter, President and CEO,
stated, "On behalf of AuRico's management and Board of Directors,
we would like to welcome both Sean and Mike to the Company and look
forward to their contributions as we continue to advance our
stand-out Kemess Gold-Copper project in British Columbia."
About AuRico Metals
AuRico Metals is a mining development and royalty company with a
100% interest in the Kemess property in British Columbia, Canada. The Kemess property
hosts the feasibility-stage Kemess Underground Gold-Copper Project,
the Kemess East Exploration Project, and the infrastructure
pertaining to the past producing Kemess South mine. AuRico's
royalty portfolio includes a 1.5% NSR royalty on the Young-Davidson
Gold Mine and a 2% NSR royalty on the Fosterville Mine, as well as
a portfolio of additional producing and pre-production royalty
assets located in North America
and Australia.
Cautionary Statement on Forward-Looking
Information
This press release contains forward-looking statements and
forward-looking information as defined under Canadian and U.S.
securities laws. All statements, other than statements of
historical fact, are, or may be deemed to be, forward-looking
statements. The words "expect", "believe", "anticipate", "will",
"intend", "estimate", "forecast", "budget" and similar expressions
identify forward-looking statements. These statements are
based on a number of factors and assumptions that, while considered
reasonable by management at the time of making such statements, are
inherently subject to significant business, economic and
competitive uncertainties and contingencies. Known and
unknown factors could cause actual results to differ materially
from those projected in the forward-looking statements.
Actual results and developments are likely to differ, and may
differ materially, from those expressed or implied by the
forward-looking statements contained herein. Readers are cautioned
that forward-looking statements are not guarantees of future
performance. All of the forward-looking statements made in this
press release are qualified by these cautionary statements. The
Company disclaims any intention or obligation to update or revise
any forward-looking statements whether as a result of new
information, future events or otherwise, except as required by
applicable law.
SOURCE AuRico Metals
