Business
AuRico Gold to Sell the Ocampo Mine and Enters into a Joint Venture Agreement on the Orion Project for $750 Million in Cash
(all amounts are in U.S. dollars unless otherwise indicated) TORONTO, Oct. 9, 2012 /C...
About this update from Alamos Gold Inc.
[{"type":"text","content":"\n\n\n\n\n\n(all amounts are in U.S. dollars unless otherwise indicated)\n\n\nTORONTO, Oct. 9, 2012 /CNW/ - AuRico Gold Inc. (TSX:AUQ) (NYSE: AUQ), (\"AuRico Gold\" or \"the Company\")\n is pleased to announce that it has entered into a definitive agreement\n pursuant to which Minera Frisco, S.A.B. de C.V. (\"Minera Frisco\") will\n acquire the Ocampo mine and the adjacent exploration projects \"Venus\"\n and \"Los Jarros\" all located in Chihuahua State, Mexico and a 50%\n interest in the Orion advanced development project located in Nayarit\n State, Mexico from AuRico Gold, for a total cash consideration of $750\n million (the \"Transaction\"). Minera Frisco (BMV: MFRISCO, OTC: MSNFY)\n is a leading Mexican mining company that was spun out of Grupo Carso\n S.A. de C.V. (BMV: GCARSO, OTC: GPOVY) in November 2010 and is listed\n on the Mexican Stock Exchange with a current market capitalization of\n approximately $10.7 billion. The transaction is expected to close in\n December 2012.\n\n\nUpon closing of the Transaction, the Company expects to use the net\n proceeds from the Transaction to eliminate certain debt obligations,\n invest in internal growth opportunities, provide sufficient working\n capital and liquidity for the Company going forward and to undertake a\n significant return of capital to shareholders.\n\n\nScott Perry, President and CEO of AuRico Gold commented, \"Minera Frisco\n presented a compelling, all-cash offer that will strengthen the\n Company's balance sheet and repositions AuRico to execute on its\n strategy of delivering consistent, reliable and sustainable production\n from our two core assets in Canada and Mexico. The Transaction will\n allow us to deliver a meaningful return of capital to our shareholders,\n significantly enhance our liquidity position, give us considerable\n financial flexibility to support our current operations and examine\n brownfield expansion opportunities. Following the Transaction, the\n Company will be well positioned to meet its key objectives of growing\n its profitability and cash flow through the long life, low cost\n Young-Davidson and El Chanate operations located in low risk\n jurisdictions while maintaining a strong organic growth profile\n primarily driven by increasing production at Young-Davidson. In\n addition, we have gained a solid partner to further evaluate and...