TSX : AUE
AIM : AUE
TORONTO, Dec. 17, 2013 /CNW/ - Aureus Mining Inc. (TSX: AUE / AIM: AUE)
("Aureus" or the "Company") is pleased to announce that it has signed
the US$ 88 million project finance loan facility agreement with the
South African banks Nedbank Limited ("Nedbank") and Rand Merchant Bank
("RMB"), and has also signed a subordinated loan facility agreement for
US$ 12 million with RMB Resources. These loan facilities will finance
the development of the Company's New Liberty Gold Project ("New
Liberty" or "the Project"), located within the Southern Block of the
Company's 100% owned Bea Mountain Mining licence in Liberia.
HIGHLIGHTS:
Project Finance Loan Facility
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US$ 88 million project finance loan facility
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Total cost of funding is US$ LIBOR (London Interbank Offered Rate) plus
4.3%
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Project finance loan facility will be supported by Export Credit
Insurance Corporation of South Africa Limited ("ECIC"), which provides
political and commercial risk coverage for Nedbank and RMB
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Six year facility
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First drawdown anticipated in March / April 2014
Subordinated Loan Facility
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US$ 12 million subordinated loan facility
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Total cost of funding is US$ LIBOR plus 9.3%, including political risk
insurance ("PRI") of c.1.8%
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11.1 million warrants with an exercise price of GBP 0.42788 for a term
of five years
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Six and a half year facility
Commenting on signing the project finance loan facilities, David
Reading, President and Chief Executive Officer of Aureus Mining Inc.,
said:
"The signing of the project finance loan facilities to finance New
Liberty is the final key step in Aureus' strategy of building Liberia's
first commercial gold mine. We have a very compelling debt package
which has an overall interest cost of c.6%. We are delighted to
welcome and look forward to working with Nedbank, RMB, ECIC and RMB
Resources as key partners in providing the debt component for the New
Liberty Project and we expect this to be a significant step in
harnessing Liberia's potential in becoming West Africa's newest gold
district."
This financing transaction was the winner of the prestigious Development
Funding Deal of the Year award at the Mines & Money Conference in
London on 4 December 2013.
For the purposes of the US$ 88 million project finance loan facility
agreement, Nedbank acted through its Nedbank Capital division and Rand
Merchant Bank is a division of FirstRand Bank Limited. In respect of
the US$ 12 million subordinated loan facility agreement, RMB Resources
is a division of FirstRand Bank Limited (London Branch). Nedbank, RMB,
RMB Resources and ECIC 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 Company has granted 11,124,528 warrants to RMB Resources as part of
the US$ 12 million subordinated loan facility agreement. One warrant
entitles RMB Resources to one share. The warrants are exercisable from
the date of the first drawdown of the senior loan facility. The terms
of the subordinated loan facility agreement are subject to TSX
approval.
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 924,000 ounces of gold grading
3.4 g/t and an estimated measured and indicated mineral resource of
1,143,000 ounces of gold grading 3.63 g/t and an estimated inferred
mineral resource of 593,000 ounces of gold grading 3.2 g/t. A
Definitive Feasibility Study has been completed on the Project and
construction has commenced with initial earthworks. The Project is
expected to have an 8 year mine life and annual production of 119,000
ounces for the first 6 years of production. The Company has financed
the Project's equity and debt funding requirement.
The New Liberty Gold Project is located within the Southern Block of the
100% owned Bea Mountain mining licence. This licence covers 457 km² and
has a 25 year, renewable, mineral development agreement. The Northern
Block of the Bea Mountain mining license also hosts additional gold
projects of Ndablama, Gondoja and Weaju, which are the focus of
exploration programs during 2013. Ndablama has an inferred mineral
resource of 451,000 ounces of gold grading 2.1 g/t and Weaju has an
inferred mineral resource of 178,000 ounces of gold grading 2.1 g/t.
The Archaen Gold exploration licence, which covers 89 km², is also a
focus of exploration for 2013, with Leopard Rock being the main
target. The Yambesei (759 km2), Archaen West (112.6 km2), Mabong (36.6 km2) and Mafa West (15.6 km2) licences will also be subject to preliminary reconnaissance geological
work.
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
Annual Information Form of Aureus Mining Inc. dated March 20, 2013 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.