TIDMAUE
RNS Number : 1314U
Aureus Mining Inc.
05 April 2016
5 April 2016
Aureus Mining Inc.
TSX : AUE
AIM : AUE
NEW LIBERTY GOLD MINE:
DEBT DEFERRAL APPROVAL AND MINE PLAN UPDATE
Aureus Mining Inc. ("Aureus" or the "Company"), the TSX and AIM
listed West African gold producer, is pleased to announce that,
following the announcement of 1 March 2016, the Company has
received credit approval from its lender group to further defer its
first debt repayment to 29 April 2016.
The Company continues to work with its consultants, SRK
Consulting (UK) Limited ("SRK"), to finalise a number of revised
mine plan scenarios for New Liberty to deliver optimum value from
the Project at varying gold price levels. Work completed to date
includes the development of an updated orebody model for the
Project, utilising the additional information provided by the grade
control drilling that was completed at the Project throughout 2015.
This updated model has been used to undertake a pit optimisation
exercise to develop the most economic ultimate pit-shell, pit
phasing and ramp designs for the Project. Work continues to
progress on developing an optimal mining schedule for the mining of
this pit.
These plans will be used as the basis for discussions between
the Company, Nedbank Limited ("Nedbank"), Rand Merchant Bank
("RMB") and the Export Credit Insurance Corporation of South Africa
Limited ("ECIC") (collectively, the "Lenders") to mutually agree an
appropriate debt repayment schedule.
A further announcement will be made following the completion of
the discussions between the Company and the Lenders.
Contact Information
Aureus Mining Inc. Buchanan
David Reading / Paul Thomson Bobby Morse / Anna Michniewicz
Tel: +44(0) 20 7010 7690 Tel: +44(0) 20 7466 5000
Numis Securities Limited RBC Capital Markets
(Nominated Adviser) (Financial Advisor)
John Prior / James Black Richard Horrocks-Taylor
/ Paul Gillam / Richard Hughes
Tel: +44(0) 20 7260 1000 Tel: +44(0) 20 7653 4000
About Aureus Mining Inc.
The Company's assets include the New Liberty Gold Mine in
Liberia (the "New Liberty Gold Mine," "New Liberty" or the "mine")
which has an estimated proven and probable mineral reserve of 8.5
Mt with 924,000 ounces of gold grading 3.4 g/t and an estimated
measured and indicated mineral resource of 9,796 Kt with 1,143,000
ounces of gold grading 3.63 g/t and an estimated inferred mineral
resource of 5,730 Kt with 593,000 ounces of gold grading 3.2 g/t. A
Definitive Feasibility Study ("DFS") has been completed, the first
gold pour has taken place and work continues on commissioning the
plant for full scale commercial production. The mine is expected to
have an 8 year life and annual production of 119,000 ounces for the
first 6 years of production. The foregoing mineral reserve and
mineral resource estimates and additional information in connection
therewith are set out in the Company's technical report dated March
25, 2015 and entitled "New Liberty Gold Project, Bea Mountain
Mining Licence Southern Block, Liberia, West Africa, Definitive
Project Plan."
The New Liberty Gold Mine is located within the Southern Block
of the 100% owned Bea Mountain mining licence. This licence covers
478 km(2) and has a 25 year, renewable, mineral development
agreement. The Bea Mountain mining license also hosts additional
gold projects of Ndablama, Gondoja, Weaju and Leopard Rock which
are the focus of exploration programs during 2016. Ndablama has an
indicated mineral resource of 386,000 ounces of gold grading 1.6
g/t and inferred mineral resource of 515,000 ounces of gold grading
1.7 g/t and Weaju has an inferred mineral resource of 178,000
ounces of gold grading 2.1 g/t. The Yambesei (759 km(2) ), Archaen
West (112.6 km(2) ), Mabong (36.6 km(2) ) and Mafa West (15.6 km(2)
) licences will also be subject to preliminary reconnaissance
geological work. The foregoing mineral resource estimates and
additional information in connection therewith are set out in the
Company's technical report dated December 1, 2014 and entitled
"Ndablama and Weaju Gold Projects, Bea Mountain Mining Licence,
Northern Block, Technical Report on Mineral Resources" ("Ndablama
and Weaju Technical Report 2014").
The Company also has a gold exploration permit in Cameroon.
Qualified Persons
The Company's Qualified Person is David Reading, who holds a MSc
in Economic Geology from University of Waterloo, Canada and is a
Fellow of the Institute of Materials, Minerals and Mining. David
Reading is the President and CEO of Aureus Mining Inc. and has
reviewed and approves this press release.
Forward Looking Statements
Certain information contained in this Announcement constitutes
forward looking information. This information may relate to future
events or the Company's future performance. All information other
than information of historical fact is forward looking information.
The use of any of the words "anticipate", "plan", "continue",
"estimate", "expect", "may", "will", "project", "should",
"believe", "predict" and "potential" and similar expressions are
intended to identify forward looking information. This information
involves known and unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from
those anticipated in such forward looking information. No assurance
can be given that this information will prove to be correct and
such forward looking information included in this Announcement
should not be unduly relied upon. This information speaks only as
of the date of this Announcement. Such forward looking information
includes, among other things, statements or information relating
to: the application of proposed financing proceeds to strengthening
the Company's balance sheet and reduction of accounts payable, the
Company's ability to meet future debt repayment obligations and to
obtain waivers and amendments in respect thereof, the Company's New
Liberty Gold Mine in Liberia (the "New Liberty Gold Mine"), the
continuation of commercial production at the New Liberty Gold Mine
and the proposed plans relating thereto regarding operations, the
provision of additional mining equipment and explosives and their
impact on the mining rate, estimates relating to tonnage, grades,
waste ratios, recovery rates and future gold production,
life-of-mine estimates, expectations regarding throughput gold
production, mill treatment and plant feed, estimates of capital and
operating costs and start-up costs, anticipated sources of funding,
expectations regarding the engagement of external contractors,
estimates of revenues and pay-back periods, expectations regarding
operating parameters, as well as the other forecasts, estimates and
expectations relating to the New Liberty Gold Mine included in this
Announcement; the future market price of commodities; production
targets; timetables; the continued listing of the common shares of
the Company on the TSX and AIM.
With respect to forward looking information contained in this
Announcement, assumptions have been made regarding, among other
things: general business, economic and mining industry conditions;
interest rates and foreign exchange rates; the impact of proposed
provision of additional equipment and explosives on the mining
rate; the parameters and assumptions employed in the New Liberty
Technical Report, (including but not limited to, those relating to
future mining and operating costs, processing and recovery rates,
net present values and internal rates of return, timing for the
commencement of production, tax and royalty rates, future gold
prices, metallurgical rates, operations and management, grades);
the supply and demand for commodities and precious and base metals
and the level and volatility of the prices of gold; the ability of
the Company to raise sufficient funds from capital markets and/or
debt to meet its future obligations and planned activities; the
obtaining of waivers and amendments from the Company's creditors in
respect of its debt repayment obligations; the business of the
Company including the political environments and legal and
regulatory frameworks in Liberia with respect to, among other
things, the ability of the Company to obtain, maintain, renew
and/or extend required permits, licences, authorizations and/or
approvals from the appropriate regulatory authorities and the
ability of the Company to continue to obtain qualified staff and
equipment in a timely and cost-efficient manner to meet its
demand.
Actual results could differ materially from those anticipated in
the forward looking information contained in this Announcement as a
result of the risk factors, including: risks normally incidental to
exploration and development of mineral properties; the inability of
the Company to obtain required financing, when needed and/or on
acceptable terms or at all; the inability to obtain required
waivers and amendments from the Company's creditors in respect of
its debt repayment obligations and consequential risks of default
thereon; risks related to operating in West Africa; health risks
associated with the mining workforce in West Africa; risks related
to the Company's title to its mineral properties; adverse changes
in commodity prices; risks related to current global financial
conditions; risks that the Company's exploration for and
development of mineral deposits may not be successful; the
inability of the Company to obtain, maintain, renew and/or extend
required licences, permits, authorizations and/or approvals from
the appropriate regulatory authorities and other risks relating to
the legal and regulatory frameworks in Liberia, including adverse
changes in applicable laws; competitive conditions in the mineral
exploration and mining industry; risks related to obtaining
insurance or adequate levels of insurance for the Company's
operations; uncertainty of mineral resource and reserve estimates;
the inability of the Company to delineate additional mineral
resources; risks related to environmental regulations;
(MORE TO FOLLOW) Dow Jones Newswires
April 05, 2016 02:00 ET (06:00 GMT)
uncertainties in the interpretation of results from drilling;
uncertainties in the estimates and assumptions used, and risks in
the methodologies employed, in the New Liberty Technical Report and
that the completion of additional work at the New Liberty Gold Mine
could result in changes to the forecasts, estimates and
expectations contained in the New Liberty Technical Report; risks
related to the legal systems in Liberia; risks related to the tax
residency of the Company; the possibility that future exploration,
development or mining results will not be consistent with
expectations; inflation; changes in exchange and interest rates;
risks related to the activities of artisanal miners; actions of
third parties that the Company is reliant upon; lack of
availability at a reasonable cost or at all, of plants, equipment
or labour, including required equipment, explosives and other
necessary material not being delivered in the expected time frame,
or at all; the inability to attract and retain key management and
personnel; political risks; the inability to enforce judgments
against the Company's directors and officers; and future unforeseen
liabilities and other factors.
The forward looking information included in this Announcement is
expressly qualified by this cautionary statement and is made as of
the date of this Announcement. The Company does not undertake any
obligation to publicly update or revise any forward looking
information except as required by applicable securities laws.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCUSSNRNBASRAR
(END) Dow Jones Newswires
April 05, 2016 02:00 ET (06:00 GMT)
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