Business
AuRico Gold Negotiates Receipt of C$20 Million Upfront Payment and Ongoing Royalty with Crocodile Gold
TORONTO , Dec. 22, 2014 /CNW/ - AuRico Gold Inc. (TSX: AUQ) (NYSE: AUQ) , ("AuRico" o...
About this update from Auq Gold Mining Inc.
[{"type":"text","content":"\n\n\nTORONTO, Dec. 22, 2014 /CNW/ - AuRico Gold Inc. (TSX: AUQ) (NYSE: AUQ), (\"AuRico\" or the \"Company\") today announced that it has entered into an\n agreement with Crocodile Gold providing for termination of the deferred\n cash payment arrangement with Crocodile Gold that was previously\n established in 2012 and its replacement with a revised agreement that\n provides both parties with a more satisfactory and mutually beneficial\n arrangement. Completion of the transaction is subject to final approval\n from the Foreign Investment Review Board (\"FIRB\") of Australia.\n\n\nUnder the terms of the previous arrangement, AuRico was entitled to\n receive deferred cash payments based on net free cash flow derived from\n the Fosterville and Stawell gold mines. Under the new agreement,\n Crocodile Gold will pay AuRico C$20 million in cash immediately upon\n closing and will grant AuRico a net smelter return (\"NSR\") royalty of\n 2% from Fosterville Gold Mine and 1% from Stawell Gold Mine.\n\n\n\"AuRico is pleased with the revised agreement as it immediately\n monetizes potential future payments by securing a significant C$20\n million upfront payment while retaining potential upside through the\n NSR arrangement\", stated Scott Perry, President and CEO of AuRico Gold.\n\n\nAbout AuRico Gold\n\n\nAuRico Gold is a leading Canadian gold producer with mines and projects\n in North America that have significant production growth and\n exploration potential.  The Company is focused on its core operations\n including the cornerstone Young-Davidson gold mine in northern Ontario,\n and the El Chanate mine in Sonora State, Mexico. AuRico's project\n pipeline also includes the advanced development Kemess Underground\n Project in northern British Columbia and the Lynn Lake Gold Camp in\n northern Manitoba. The Company also has other exploration opportunities\n in Canada and Mexico. AuRico's head office is located in Toronto,\n Ontario, Canada.\n\n\nCautionary Statement\n\n\nThis press release contains forward-looking statements and\n forward-looking information as defined under Canadian and U.S.\n securities laws.  All statements, other than statements of historical\n fact, are forward-looking statements. The words \"expect\", \"believe\",\n \"anticipate\", \"will\", \"intend\", \"estimate\", \"forecast\", \"budget\" and\n similar...