April 5, 2011Back
JOINT NEWS RELEASE
COMPLETION OF PLAN OF ARRANGEMENT AND COMMENCEMENT OF TRADING
April 13, 2011, African Aura Mining Inc. (“African Aura”) and Aureus Mining Inc. (“Aureus Mining”) are pleased to announce the completion of the previously announced plan of arrangement (the “Arrangement”), pursuant to which African Aura’s interests in its gold assets (including the New Liberty Gold Project in Liberia), approximately 14% of the outstanding ordinary shares of Stellar Diamonds Plc and cash and cash equivalents equal to 40% of African Aura’s total cash balance as at the effective time of the Arrangement (the “Effective Time”) were transferred to Aureus Mining. As a result of the Arrangement, each shareholder of African Aura received one new common share of African Aura and one common share of Aureus Mining for each common share of African Aura held by such shareholder at the Effective Time. In addition, African Aura has now changed its name to “Afferro Mining Inc.” as part of the Arrangement and all further press releases of African Aura will be issued under the name of “Afferro Mining Inc.” (“Afferro Mining”). Afferro Mining’s new website effective today is www.afferro-mining.com.
Following the completion of the Arrangement, the common shares of Afferro Mining have today been admitted to trading on the AIM market of the London Stock Exchange and will be listed on the TSX Venture Exchange (the “TSXV”), in each case under the stock symbol “AFF”. The common shares of Aureus Mining have today also been admitted to trading on the AIM market of the London Stock Exchange and will be listed on the Toronto Stock Exchange (the “TSX”), in each case under the stock symbol “AUE”.
Evolution Securities Limited acts as Nominated Adviser and Broker to Afferro Mining and Nominated Adviser and Joint Broker to Aureus Mining. RBC Capital Markets acts as Joint Broker to Aureus Mining.
A copy of the Aureus Mining Admission Document is available at www.aureus–mining.com.
Luis da Silva and David Reading, CEOs of Afferro and Aureus, respectively, commented:
“This marks the final step in the restructuring of African Aura on its path to unlock the latent value in the combined group. The IPO of Aureus creates two attractive and robust pure commodity plays well positioned for growth in the immediate future. With two strong executive and management teams and solid technical experience, both are companies ready for progress as independent entities.”
About Afferro Mining Inc. (formerly African Aura Mining Inc.)
Afferro Mining is an established exploration and development company listed on the TSX-V (AFF) and London’s AIM (AFF). Afferro Mining’s portfolio includes a 100% interest in the Nkout iron ore project (the “Nkout Project”), which has an estimated Inferred Mineral Resource of some 1.04 billion tonnes grading 34.2% Fe, 43.0% SiO2 and 2.9% AL2O3 and 0.05% P, and surrounding iron targets in Cameroon which is subject to a resource expansion drilling programme targeting 4Bt. Afferro Mining also has a 38.5% interest in the Putu iron ore project in Liberia (the “Putu Project”), which has an estimated Inferred Mineral Resource of 185 Mt of oxide material with a grade of 37.8% Fe, 17 Mt of haematite itabirite at 48.25% Fe, and 2,173 Mt of magnetite itabirite at 33.7% Fe. The Putu Project is subject to a resource expansion drilling programme and is 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.
About Aureus Mining Inc.
Aureus Mining is a TSX and AIM listed gold mining company (AUE). Its assets include the New Liberty gold deposit in western Liberia (the “New Liberty Gold Project”), which has an estimated Indicated Mineral Resource of 751,000 ounces of gold grading 4.17 g/t (contained in 5,599,000 tonnes) and an estimated Inferred Mineral Resource of 762,000 ounces of gold grading 3.40 g/t (contained in 7,040,000 tonnes). The New Liberty Gold Project is being advanced through a bankable feasibility study, and the proximal Ndablama, Weaju, Silver Hills and Gondoja gold projects are all within the Company’s Bea Mountain 25 year renewable Mineral Development Agreement.
In addition, the Aureus Mining has an approximate 14% interest in AIM-listed diamond producer Stellar Diamonds Plc (AIM: STEL, www.stellar-diamonds.com).
Afferro Mining Inc.
Luis da Silva, President & CEO
Tel: +44 (0) 20 7257 2930
Evolution Securities Limited
Jeremy Ellis/ Neil Elliot
Tel: +44 (0) 20 7071 4300
Pelham Bell Pottinger
Charles Vivian / James MacFarlane
Tel: +44 (0) 20 7861 3232
Aureus Mining Inc.
David Reading, CEO
Tel: +44 (0) 20 7257 2930
Evolution Securities Limited
Jeremy Ellis/ Neil Elliot
Tel: +44 (0) 20 7071 4300
RBC Capital Markets
Tel: 44 (0)207 653 4000
Buchanan Communications Limited Bobby Morse / Katharine Sutton
Tel: +44 (0) 20 7466 5000
The technical information contained in this press release relating to the Putu Project is from the technical report entitled “Mineral Resource Update for the Putu Iron Ore Project, Grand Gedeh County, Liberia” dated February 4, 2011 and prepared by Howard Baker, a full-time employee of SRK Consulting (UK) Ltd. (“SRK”), an independent Consultancy, and a “qualified person” within the meaning of National Instrument 43-101 (“NI 43-101”), and Ben Lepley, an employee of SRK. The technical information contained in this press release relating to the Nkout Project is from the technical report entitled “Mineral Resource Estimate for the Nkout Centre Iron Project, Community of Djoum, Cameroon” dated January 28, 2011 and prepared by Howard Baker, an employee of SRK and a “qualified person” within the meaning of NI 43-101, and Robert Goddard, an employee of SRK. Copies of the above-noted technical reports are available under African Aura’s/Afferro Mining’s SEDAR profile at www.sedar.com.
Howard Baker has some ten years experience in the exploration, definition and mining of iron ore Mineral Resources. Mr. Baker 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” under NI 43-101 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 this press release 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.
The technical information contained in this press release relating to the New Liberty Gold Project is from the technical report entitled “Technical Report on Additional Drilling, Estimated Mineral Resources and Preliminary Economic Assessment” dated December 21, 2010 and prepared by Christopher G. Arnold and Martin Staples, each an employee of AMC Consultants (UK) Limited (“AMC”) and a “qualified person” within the meaning of NI 43-101. A copies of such technical report is available under African Aura’s/Afferro Mining’s SEDAR profile at www.sedar.com.
Mr. Christopher G. Arnold, BSC(Hons),MSc, MAusIMM (CP) of AMC consents to the inclusion in this press release 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.
This press release contains certain forward-looking information. All information, other than information regarding historical fact, that addresses activities, events or developments that Afferro Mining and/or Aureus Mining believe, expect or anticipate 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 Afferro Mining and Aureus Mining and their anticipated future growth, the admission and listing of the common shares of each of Afferro Mining and Aureus Mining as set forth above, mineral resource estimates, the anticipated exploration and development activities of each of Afferro Mining and Aureus Mining (including the resource expansion drilling programme at the Nkout Project and surrounding iron projects in Cameroon and the projected targets relating thereto). The foregoing and any other forward-looking information contained in this press release reflects the current expectations, assumptions or beliefs of Afferro Mining and/or Aureus Mining based on information currently available to Afferro Mining and/or Aureus Mining. With respect to the forward-looking information contained in this press release, Afferro Mining and Aureus Mining have made assumptions regarding, among other things: general business, economic and mining industry conditions; and it has also been assumed that no material adverse change in the price of precious and/or base metals occurs, no unusual geological or technical problems occur and no significant events occur outside of the normal course of Afferro Mining’s or Aureus Mining’s respective businesses.
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: risks normally incidental to exploration and development of mineral properties; uncertainties in the interpretation of results from drilling and test work; the possibility that future exploration, development or mining results will not be consistent with expectations; uncertainty of mineral resources estimates; 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 Information Circular of African Aura dated February 28, 2011, a copy of which is available on SEDAR at www.sedar.com, and in the Aureus Mining Admission Document, a copy of which is available at www.aureus–mining.com.
Any mineral resource figures referred to in this press release are estimates and no assurances can be given that the indicated levels of minerals will be produced. Such estimates are expressions of judgment based on knowledge, mining experience, analysis of drilling results and industry practices. Valid estimates made at a given time may significantly change when new information becomes available. While Afferro Mining and Aureus Mining believe that the mineral resource estimates in respect of their respective properties are well established, by their nature mineral resource estimates are imprecise and depend, to a certain extent, upon statistical inferences which may ultimately prove unreliable. If such mineral resource estimates are inaccurate or are reduced in the future, this could have a material adverse impact on Afferro Mining and/or Aureus Mining, as applicable. Due to the uncertainty that may be attached to inferred mineral resources, it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration.
Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable law, Afferro Mining and Aureus Mining disclaim 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.