AuRico Metals Announces Closing of Acquisition of Royalties on Hemlo and Eagle River Mines
Toronto (ots/PRNewswire)
AuRico Metals Inc. , ("AuRico" or the "Company") is pleased to announce the closing of the previously announced acquisition of Mineral Streams Inc. ("Mineral Streams") , a private company owning a 0.25% NSR royalty on the Williams mine at Barrick Gold Corporation's ("Barrick") Hemlo complex, a 0.5% NSR royalty on Wesdome Gold Mines Ltd.'s Eagle River mine, and a 1.5% NSR royalty on Barrick's David Bell property, which also forms part of the Hemlo complex.
Upon closing, all of the issued and outstanding shares of Mineral Streams were acquired in exchange for 4,753,950 shares of AuRico and C$3,425,000 in cash. The assets acquired from Mineral Streams include positive working capital of approximately C$1 million and the acquired royalties are anticipated to generate approximately C$1 million per year in royalty income assuming current metal prices and assuming production levels consistent with recent performance at the underlying operations.
Following completion of the acquisition, the Company has 130,873,950 shares issued and outstanding listed on the Toronto Stock Exchange.
About AuRico Metals
AuRico Metals is a mining royalty and development company whose royalty assets include a 1.5% NSR on the Young-Davidson Gold Mine, a 0.25% NSR on the Williams mine at Hemlo, and a 0.5% NSR on the Eagle River mine - all located in Ontario, Canada. AuRico Metals also has a 2% NSR on the Fosterville Mine, located in Victoria, Australia, and 100% ownership of the advanced Kemess Project in British Columbia, Canada. AuRico Metals' goal is to deliver sustained value creation for the company's many stakeholders. AuRico Metals' head office is located in Toronto, Ontario, Canada.
Cautionary Statement
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 forward-looking statements. The words "expect", "believe", "anticipate", "will", "intend", "estimate", "forecast", "budget" and similar expressions identify forward-looking statements. Forward-looking statements include information as to strategy, plans or future financial or operating performance, such as the Company's expansion plans, project timelines, production plans, projected cash flows or capital expenditures, cost estimates, projected exploration results, reserve and resource estimates and other statements that express management's expectations or estimates of future performance. Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by management, are inherently subject to significant uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements, including: uncertainty of production and cost estimates; fluctuations in the price of gold and foreign exchange rates; the uncertainty of replacing depleted reserves and the possible recalculation or reduction of reserves and resources; the risk that the Young-Davidson shaft will not perform as planned; the risk that mining operations do not meet expectations; the risk that projects will not be developed according to budgets or timelines, changes in laws in Canada, Australia and other jurisdictions in which the Company may carry on business; risks of obtaining necessary licenses, permits or approvals for operations or projects such as Kemess; disputes over title to properties; the speculative nature of mineral exploration and development; compliance risks with respect to current and future environmental regulations; disruptions affecting operations; opportunities that may be pursued by the Company; employee relations; availability and costs of mining inputs and labor; the ability to secure capital to execute business plans; volatility of the Company's share price; the effect of future financings; litigation; risk of loss due to sabotage and civil disturbances; the values of assets and liabilities based on projected future cash flows; risks arising from derivative instruments or the absence of hedging; adequacy of internal control over financial reporting; changes in credit rating; risks related to the operation of the properties in which AuRico Metals holds a royalty; and the impact of inflation. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained herein. Such statements are based on a number of assumptions which may prove to be incorrect, including assumptions about: business and economic conditions; commodity prices and the price of key inputs such as labour, fuel and electricity; credit market conditions and conditions in financial markets generally; the ongoing operation of the properties in which AuRico Metals holds a royalty by the operators of such underlying properties; revenue and cash flow estimates, production levels, development schedules and the associated costs; ability to procure equipment and supplies and ability to do so on a timely basis; the timing of the receipt of permits and other approvals for projects and operations; the ability to attract and retain skilled employees and contractors for the operations; the accuracy of reserve and resource estimates; the impact of changes in currency exchange rates on costs and results; interest rates; taxation; and ongoing relations with employees and business partners. However, there can be no assurance that forward looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements and investors are cautioned that forward looking statements are not guarantees of future performance. AuRico Metals cannot assure investors that actual results will be consistent with these forward looking statements. Accordingly, investors should not place undue reliance on forward looking statements due to the inherent uncertainty therein. 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.
Please see http://www.auricometals.ca or contact: Chris Richter, President and Chief Executive Officer, AuRico Metals Inc., 416-216-2780, chris.richter@auricometals.ca; Rob Chausse, Chief Financial Officer, AuRico Metals Inc., 416-216-2780, robert.chausse@auricometals.ca