TORONTO, Dec. 14, 2012 /CNW/ - AuRico Gold Inc. (TSX: AUQ) (NYSE: AUQ), ("AuRico" or "the Company") is pleased to announce that it has completed
the sale of the Ocampo mine and adjacent exploration projects "Venus"
and "Los Jarros", located in Chihuahua, Mexico, to Minera Frisco,
S.A.B. de C.V ("Minera Frisco"). Minera Frisco has also acquired a 50%
interest in the Orion advanced exploration project and a joint venture
agreement is currently being negotiated.
Total cash consideration paid at closing by Minera Frisco was US$750
million. AuRico will use the net proceeds from the sale to eliminate
certain debt obligations, invest in internal growth opportunities,
provide sufficient working capital and liquidity for the Company and
undertake a significant return of capital to shareholders.
"With our divestment strategy complete, AuRico emerges with a
streamlined asset base, growing production and free cash flow profile,
and a peer-leading balance sheet. The Company is now in a position to
focus on delivering consistent performance from our two low-cost,
long-life core assets located in Canada and Mexico as well as our
commitment to shareholder-friendly initiatives," said Scott Perry,
President and Chief Executive Officer.
About AuRico Gold
AuRico Gold is a leading Canadian gold producer with mines and projects
in North America that have significant production growth and
exploration potential. The Company is focused on its core operations
including the Young-Davidson gold mine in northern Ontario which
declared commercial production on September 1, 2012 and the El Chanate
mine in Sonora State. AuRico's project pipeline also includes advanced
development opportunities in Mexico and British Columbia. AuRico's head
office is located in Toronto, Ontario, Canada.
Certain information included in this news release constitutes
forward-looking statements, including any information as to our
projects, plans and future financial and operating performance. All
statements, other than statements of historical fact, are
forward-looking statements. The words "expect", "believe",
"anticipate", "will", "intend", "estimate", "forecast", "budget",
"schedule" and similar expressions identify forward-looking statements.
Forward-looking statements are necessarily based upon a number of
factors and assumptions that, while considered reasonable by
management, are inherently subject to significant business, economic
and competitive uncertainties and contingencies. Known and unknown
factors could cause actual results to differ materially from those
projected in the forward-looking statements. Such factors include, but
are not limited to: changes to current estimates of mineral reserves
and resources; fluctuations in the price of gold and silver; changes in
foreign exchange rates (particularly the Canadian dollar, Mexican peso
and U.S. dollar); the impact of inflation; changes in our credit
rating; employee relations; litigation; disruptions affecting
operations; availability of and increased costs associated with mining
inputs and labor; development delays at the Young-Davidson mine;
technical challenges associated with the construction of capital
projects; operating or technical difficulties in connection with mining
or development activities; inherent risks associated with mining and
mineral processing; the risk that the Young-Davidson, El Chanate and
Ocampo mines and may not perform as planned; the ability to realize the
perceived benefits from the acquisition of Capital Gold and Northgate;
the ability to conclude a joint venture agreement with Minera Frisco;
uncertainty with the Company's ability to secure capital to execute its
business plans; the speculative nature of mineral exploration and
development, including the risks of obtaining necessary licenses and
permits; contests over title to properties; changes in national and
local government legislation in Canada, Mexico and other jurisdictions
in which the company does or may carry on business in the future; risk
of loss due to sabotage and civil disturbances; risks arising from
holding derivative instruments; business opportunities that may be
pursued by, the company; and the ability of the company to successfully
integrate acquisitions. Many of these uncertainties and contingencies
can affect our actual results and could cause actual results to differ
materially from those expressed or implied in any forward-looking
statements made by, or on behalf of, us. Readers are cautioned that
forward-looking statements are not guarantees of future performance.
All of the forward-looking statements made in this third quarter report
are qualified by these cautionary statements. Specific reference is
made to the most recent Form 40-F/Annual Information Form on file with
the SEC and Canadian provincial securities regulatory authorities for a
discussion of some of the factors underlying forward-looking
statements. The company disclaims any intention or obligation to update
or revise any forward-looking statements whether as a result of new
information, future events or otherwise, except as required by
SOURCE: AuRico Gold Inc.
For further information:
For further information please visit the AuRico Gold website at http://www.auricogold.com or contact:
Chief Executive Officer
AuRico Gold Inc.
Vice President, Investor Relations and Communications
AuRico Gold Inc.