Mar. 31, 2011 (Canada NewsWire Group) --
/NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO US NEWS WIRE SERVICES/
| TSX-V: | AUR | |
| AIM: | AAAM |
LONDON, UK, March 31 /CNW/ - African Aura Mining Inc. ("African Aura" or the "Company" expected to be renamed Afferro Mining Inc. ("Afferro")) the TSX-V (AUR) and AIM (AAAM) listed exploration and development company with divisions focused on iron ore and gold projects in sub-Saharan Africa, announces that, further to its recent press releases regarding the proposed restructuring of its assets (the "Arrangement"), the Company has received indications of support from institutional shareholders and all directors representing in excess of 40% of the issued share capital of the Company ahead of the Meeting of the Company's shareholders scheduled to consider, among other things, the Arrangement (the "Special Meeting").
The Company wishes to remind shareholders that the Special Meeting will be held at Cobbetts LLP, 70 Gray's Inn Road, London, WC1X 8BT, United Kingdom at 11:00 a.m. (London time) on 5 April 2011. If holders of depository interests in the United Kingdom are not able to attend the Special Meeting they are reminded that the Form of Instruction must be received by Computershare Investor Services plc by no later than 11.00 a.m. (BST) on 31 March 2011. For shareholders who are unable to attend the Special Meeting, they are reminded that the Form of Proxy must be received by Computershare Investor Services Inc. by no later than 11.00 a.m. (BST) on 1 April 2011.
Luis da Silva, President and CEO of African Aura commented:
"This is extremely encouraging in terms of voting prior to next
Tuesday's special meeting and reiterates the compelling case and
rationale for the split to create focused commodity plays. In the last
four months, the Company has met with a significant number of
shareholders as well as many potential investors and the sentiments
have been consistent in supporting the split. We look forward to a
positive vote on the Arrangement and beyond that delivering on our
commitment to creating value for our shareholders."
About African Aura Mining Inc.
African Aura is an established exploration and development company
listed on the TSX-V (AUR) and London's AIM (AAAM). The Company operates
two divisions that are intended to be split into separate listed
companies becoming effective, subject to shareholder, regulatory and
other approvals in April 2011:
-
The iron ore division, to be renamed Afferro, includes its 38.5%
interest in the 2.4Bt Putu iron ore project in Liberia, which is
subject to a resource expansion drilling programme and moving through
pre-feasibility managed by joint venture partner Severstal Resources
(the mining division of London and Moscow listed OAO Severstal). In
September 2010, Putu was granted a 25 year renewable Mineral
Development Agreement by the Government of Liberia. The division also
includes a 100% interest in the Nkout 1Bt iron ore project and
surrounding iron targets in Cameroon which is subject to a resource
expansion drilling programme targeting 4 Bt.
- The gold assets, to be held in "Aureus Mining Inc." when listed independently, include the New Liberty gold deposit in western Liberia which has a resource of 1.51 million ounces of gold grading 3.78 g/t (comprising 5,599,000 tonnes grading 4.17 g/t in the indicated category and 7,040,000 tonnes grading 3.40 g/t in the inferred category) which is being advanced through a bankable feasibility study, and the proximal Ndablama, Weaju, Silver Hills and Gondoja gold projects all within the Company's Bea Mountain 25 year renewable Mineral Development Agreement.
In addition, the Company has a 14% interest in AIM-listed diamond producer Stellar Diamonds Plc (AIM: STEL, www.stellar-diamonds.com). It is proposed that, following completion of the Arrangement, this holding will be held by Aureus Mining Inc.
The Company has a highly motivated and experienced team with a track record of discovering mines and taking projects through development and into production. As a pioneer, African Aura has attracted some excellent strategic partners and shareholders, always with the objective of preserving or enhancing shareholder value.
Qualified Person
Howard Baker has some ten years experience in the exploration, definition and mining of iron ore Mineral Resources. Howard Baker is a full-time employee of SRK Consulting (UK) Ltd, an independent Consultancy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the type of activity which he is undertaking to qualify as a Qualified Person in accordance with NI43-101 and a Competent Person as defined in the June 2009 Edition of the AIM Note for Mining and Oil & Gas Companies. Howard Baker consents to the inclusion in the announcement of the matters relating to iron ore in the form and context in which they appear and confirms that the information is accurate and not false or misleading.
Mr C G Arnold, BSC(Hons),MSc, MAusIMM (CP) of AMC Consultants (UK) Limited consents to the inclusion in the announcement of the matters relating to gold in the form and context in which they appear and confirms that the information is accurate and not false or misleading.
Forward-Looking Information
This press release contains certain forward-looking information. All
information, other than information regarding historical fact that
addresses activities, events or developments that the Company 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 African Aura and Aureus Mining Inc., including
the completion of the proposed Arrangement and the terms, timing and
consequences relating thereto; the listing of Aureus Mining Inc.
following the completion of the Arrangement and the anticipated voting
of the shareholders referred to in this press release relating to the
Arrangement resolution. The foregoing and other forward-looking
information contained in this press release reflects the current
expectations, assumptions or beliefs of African Aura based on
information currently available to African Aura. With respect to the
forward-looking information contained in this press release, African
Aura has made assumptions regarding, among other things: general
business, economic and mining industry conditions; the completion of
the Arrangement, including the receipt of all necessary approvals to
proceed therewith; the Company's ongoing exploration and development
activities; and it has also been assumed that no material adverse
change in the price of precious and/or base metals occurs and no
significant events occur outside of African Aura's normal course of
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: delays in obtaining, or a failure to obtain, required shareholder, regulatory and/or court approvals; the Company's inability to complete the Arrangement or obtain a favourable confirmation from the Canada Revenue Agency regarding the tax consequences of the Arrangement; risks normally incidental to exploration and development of mineral properties; 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 management information circular of the Company dated February 28, 2011 and the Company's Annual Information Form dated April 30, 2010, copies of which are available under the Company's profile on SEDAR at www.sedar.com.
Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable law, African Aura 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.
For further information on the Company you are invited to visit its website at www.african-aura.com, or SEDAR's website at www.sedar.com, or contact one of the following:
African Aura Mining Inc.
Luis da Silva, President & CEO
Tel: +44 (0) 20 7257 2930
Evolution Securities Limited
Neil Elliot/Tim Redfern
Tel: +44 (0) 20 7071 4300
Pelham Bell Pottinger
Charles Vivian/James MacFarlane
Tel: +44 (0) 20 7861 3232