TSX : AUE
AIM : AUE
TORONTO, March 20, 2013 /CNW/ - Aureus Mining Inc. (TSX: AUE) (AIM: AUE)
("Aureus" or the "Company") is pleased to announce that it has mandated
the leading South African banks Nedbank Limited, acting through its
Nedbank Capital division ("Nedbank"), and Rand Merchant Bank, a
division of First Rand Bank Limited ("RMB"), (collectively, the
"Banks"), to arrange a Project Debt Finance Facility of up to
US$ 100 million, together with an associated US$ 8 million Cost Overrun
Facility (together "the Facilities"), to support the development of the
Company's New Liberty Gold Project ("New Liberty" or "the Project") in
the Republic of Liberia.
HIGHLIGHTS:
-
Project Debt Facilities of up to US$108 million
-
Overall cost of funding of c.5% p.a. including political risk coverage
-
No gold hedging contemplated
Nedbank and RMB are leaders in African mining finance and their teams
bring a wealth of experience in mining and metals and financing of
projects, with complementary skills in export credit finance and
investment banking.
The Banks will, subject to their required internal approvals, provide
the Facilities to Bea Mountain Mining Corporation, the operator of the
New Liberty Project, and will be approaching the South African export
credit agency, Export Credit Insurance Corporation of South Africa
Limited ("ECIC"), for support in the financing. The Facilities will
have a term of six years.
The Company received a number of debt financing proposals following a
selection process which has been underway since Q4 2012, with the
positive response from a large number of major financial institutions
reflecting the robustness of the New Liberty Gold Project.
The total cost of the funding is expected to be approximately 5% p.a.
based on current US$ LIBOR (London Interbank Offered Rate). The ECIC
support will include political and commercial risk insurance for the
Banks. The Facilities will not have any mandatory gold hedging as part
of the lending terms.
Once the loan has been drawn down, interest payments will commence, but
capital repayments will only start during the production phase.
Aureus is advancing well with optimisation studies, which are almost
complete. In conjunction with this, early works have commenced at New
Liberty and the Project remains on course for first gold pour by 31
December 2014.
The estimated timing for approvals and drawdown is anticipated to be as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Updated feasibility study
|
Q2 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Banks' Credit Committee approvals
|
Q3 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sign Final Loan Agreements
|
Q4 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Facilities Conditions Precedent met
|
Q4 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First draw down on Facilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SRK Consulting (UK) Limited will be appointed as the Banks' independent
engineer. The due diligence process is already underway and along with
the optimisation work is expected to be completed by the end of May
2013.
Commenting on mandating the Banks, David Reading, President and Chief
Executive Officer of Aureus, said:
"The financing for New Liberty following the equity financing in
November last year is a key step in Aureus' strategy of building
Liberia's first gold mine. To achieve an overall cost of capital of 5%
is an excellent outcome and endorses the quality of the New Liberty
Project. We are delighted to welcome Nedbank and RMB as key partners in
providing the debt component of what will be a significant step in
harnessing Liberia's potential in becoming West Africa's newest gold
district. The Project is advancing rapidly, with early civils and
earthworks making good progress and the optimisation due to be
finalised shortly. We remain on track to achieve first gold production
in Q4 2014. We look forward to working with Nedbank, RMB and ECIC as
commercial partners in our Company."
About Aureus Mining Inc.
The Company's assets include the New Liberty gold deposit in Liberia
(the "New Liberty Gold Project" or the "Project"), which has an
estimated proven and probable reserve of 910,000 ounces of gold grading
3.3 g/t and an estimated measured and indicated mineral resource of
1,143,000 ounces of gold grading 3.6 g/t and an estimated inferred
mineral resource of 593,000 ounces of gold grading 3.2 g/t. A
feasibility study has been completed on the Project and construction
has commenced with initial earthworks. The Project is expected to have
an eight and a half year mine life and annual production of 120,000
ounces for the first five years of production. The Company has
financed the Project's equity funding requirement and is in advanced
discussions with interested parties to fund the balance.
The New Liberty Gold Project is located within the Bea Mountain mining
licence, which covers 457 km² and has a 25 year, renewable, mineral
development agreement. The Bea Mountain mining license also hosts the
proximal gold targets of Ndablama, Gondoja and Weaju, which are the
focus of exploration programs during 2013. The contiguous Archaen Gold
exploration licence, which covers 89 km², is also a focus of
exploration for 2013, with Leopard Rock being the main target.
The Company also has gold exploration permits in Cameroon.
Forward-looking Statements
This press release contains certain forward-looking information. All
information, other than information regarding historical fact, that
addresses activities, events or developments that Aureus Mining
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 Aureus Mining and their anticipated future
growth, mineral resource estimates and the anticipated exploration and
development activities of Aureus Mining. The foregoing and any other
forward-looking information contained in this press release reflects
the current expectations, assumptions or beliefs of Aureus Mining based
on information currently available to Aureus Mining. With respect to
the forward-looking information contained in this press release, Aureus
Mining has made assumptions regarding, among other things: general
business, economic and mining industry conditions; and it has also been
assumed that no material adverse change in the price of precious and/or
base metals occurs, no unusual geological or technical problems occur
and no significant events occur outside of the normal course of Aureus
Mining's respective 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: risks normally
incidental to exploration and development of mineral properties;
uncertainties in the interpretation of results from drilling and test
work; the possibility that future exploration, development or mining
results will not be consistent with expectations; uncertainty of
mineral resources estimates; adverse changes in precious and/or base
metal prices; and future unforeseen liabilities and other factors
including, but not limited to, those listed under "Risk Factors" in the
Preliminary Prospectus of Aureus Mining Inc. dated April 20, 2011, a
copy of which is available on SEDAR at www.sedar.com, and in the Aureus Mining Admission Document, a copy of which is
available at www.aureus-mining.com.
Any mineral resource figures referred to in this press release are
estimates and no assurances can be given that the indicated levels of
minerals will be produced. Such estimates are expressions of judgment
based on knowledge, mining experience, analysis of drilling results and
industry practices. Valid estimates made at a given time may
significantly change when new information becomes available. While
Aureus Mining believes that the mineral resource estimates in respect
of their respective properties are well established, by their nature
mineral resource estimates are imprecise and depend, to a certain
extent, upon statistical inferences which may ultimately prove
unreliable. If such mineral resource estimates are inaccurate or are
reduced in the future, this could have a material adverse impact on
Aureus Mining, as applicable. Due to the uncertainty that may be
attached to inferred mineral resources, it cannot be assumed that all
or any part of an inferred mineral resource will be upgraded to an
indicated or measured mineral resource as a result of continued
exploration.
Forward-looking information speaks only as of the date on which it is
made and, except as may be required by applicable law, Aureus Mining
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.
SOURCE: Aureus Mining Inc.