Business
AuRico Gold Announces US$300M Share Buy-Back Through Substantial Issuer Bid
(all amounts are in US dollars unless otherwise indicated) TORONTO, Dec. 17, 2012 /CN...
About this update from Alamos Gold Inc.
[{"type":"text","content":"\n\n\n\n\n\n(all amounts are in US dollars unless otherwise indicated)\n\n\nTORONTO, Dec. 17, 2012 /CNW/ - AuRico Gold Inc. (TSX: AUQ) (NYSE: AUQ), (\"AuRico\" or the \"Company\") announces that following its receipt of\n gross proceeds of $750 million relating to the recent sale of the\n Ocampo mine, the Board of Directors has authorized the making of a\n substantial issuer bid, pursuant to which the Company will offer (the\n \"Offer\") to purchase for cancellation up to 36,144,578 of its\n outstanding common shares (the \"Shares\") for an aggregate purchase\n price not exceeding $300 million. AuRico anticipates that the Offer\n will commence on or about December 18, 2012 and be completed in late\n January 2013, unless extended or withdrawn. The Company intends to fund\n purchases of Shares pursuant to the Offer from the Ocampo proceeds and\n has used $128 million of the proceeds to retire its existing debt\n facility.\n\n\nThe Offer will proceed by way of a \"modified Dutch auction\", pursuant to\n which AuRico shareholders may deposit all or a portion of their Shares\n at a price within a range of not less than $8.30 per Share and not more\n than $9.30 per Share (with increments of $0.05 per Share within that\n range). The modified Dutch auction tender process allows shareholders\n to individually select the price, within the specified range, at which\n they are willing to sell all or a portion of their Shares. When the\n Offer expires, AuRico will select the purchase price of the tendered\n Shares which will be the lowest tendered price within the range of\n prices, enabling the Company to purchase up to the maximum number of\n Shares validly tendered to the Offer. All Shares tendered at or below\n the selected price level will be bought at the purchase price. If the\n aggregate cost to purchase the tendered Shares exceeds $300 million,\n the Company will accept such Shares on a pro-rata basis. All Shares tendered at prices higher than the final purchase price will\n be returned to shareholders.\n\n\nThe Offer will not be conditional on any minimum number of Shares being\n tendered to the Offer, but will be subject to other conditions\n customary for transactions of this nature. The Offer will remain open\n for acceptance until January 23, 2013, unless extended or withdrawn.\n\n\nAuRico plans to commence the Offer and mail t...