Restated and Amended Mineral Development Agreement
September 24, 2013Back
24 September 2013
TSX : AUE
AIM : AUE
Aureus Mining Inc.
Restated and Amended Mineral Development Agreement
Aureus Mining Inc. (TSX: AUE / AIM: AUE) (“Aureus” or the “Company”) is pleased to announce that Bea Mountain Mining Corp, its 100% owned subsidiary in Liberia, has agreed with the Government of Liberia (“GoL”) to ratify a Restated and Amended Mineral Development Agreement (“Restated and Amended MDA”) for its Bea Mountain mining licence, which covers 457 km² and includes the New Liberty Gold Project (the “New Liberty Gold Project” or the “Project”) along with the Ndablama, Gondoja and Weaju exploration targets. The Restated and Amended MDA, which supersedes the original Mineral Development Agreement of 2001, was ratified by the Liberian legislature and signed by President Ellen Johnson Sirleaf on Thursday 19 September 2013. The Restated and Amended MDA provides for a stable operating environment in respect of the legal, operational and fiscal parameters for the operations on the Bea Mountain mining licence.
The principal terms in the Restated and Amended MDA are:
- Income Tax rate of 25% (formerly 30%);
- Royalty rate of 3% remains unchanged;
- GoL’s free and carried interest of 10% remains unchanged;
- No taxes or duties on imports;
- Customs User Fees of US$300,000 to be paid on an annual basis; and
- The remaining term is 13 years with the right to extend for an additional term of 25 years.
At the Company’s request, the original Mineral Development Agreement of 2001 was updated to harmonise it with the current legislature and to take advantage of some of the more favourable terms of the Consolidated Tax Amendment Act of 2011 (which was enacted subsequently to the original Mineral Development Agreement of 2001).
Commenting on the Restated and Amended MDA, David Reading, President and Chief Executive Officer of Aureus, said:
“The Restated and Amended MDA provides a further strengthened platform for Aureus as we rapidly move forward to becoming Liberia’s first gold producer. This agreement provides our shareholders with surety and stability in the development of the New Liberty project and the improved fiscal terms are excellent news for the Company at a time of gold price volatility. I would like to sincerely thank the Government of Liberia for their commitment to the development of the Country’s first commercial gold mine and for their support in the completion of this enabling legislation.”
|Aureus Mining Inc.
David Reading / Paul Thomson
Tel: +44(0) 20 7010 7690
Bobby Morse / Gordon Poole
Tel: +44(0) 20 7466 5000
|RBC Capital Markets (Nominated Advisor and Joint Broker)
Martin Eales / Richard Hughes
Tel: +44(0) 20 7653 4000
|GMP Securities Europe LLP (Joint Broker)
Richard Greenfield / Alexandra Carse
Tel: +44(0) 20 7647 2800
The estimates of mineral Resources for the DFS were calculated in accordance with NI 43-101 and carried out by Chris G Arnold BSc (Hons), MSc, MAusIMM (CP) of independent consultants AMC. The Reserve Study for the DFS was prepared by Mr M Staples of AMC, a Qualified Person, for the purposes of the study, under the standards set forth by National Instrument 43-101 “Standards of Disclosure for Mineral Project”, of the Canadian Securities Administrators (“NI 43-101″).
The Company’s Qualified Person responsible for preparing this release, other than as detailed above in respect of the DFS, is David Reading, who holds an MSc in Economic Geology from University of Waterloo, Canada and is a Fellow of the Institute of Materials, Minerals and Mining. David Reading is the President and CEO of Aureus Mining Inc. and consents to the inclusion in the announcement of the matters based on their information in the form and context in which it appears and confirms that this information is accurate and not false or misleading.
About Aureus Mining Inc.
The Company’s assets include the New Liberty gold deposit in Liberia (the “New Liberty Gold Project” or the “Project”), which has an estimated proven and probable reserve of 924,000 ounces of gold grading 3.4 g/t and an estimated measured and indicated mineral resource of 1,143,000 ounces of gold grading 3.63 g/t and an estimated inferred mineral resource of 593,000 ounces of gold grading 3.2 g/t. A Definitive Feasibility Study has been completed on the Project and construction has commenced with initial earthworks. The Project is expected to have an 8 year mine life and annual production of 119,000 ounces for the first 6 years of production. The Company has financed the Project’s equity funding requirement, has mandated two banks for a project debt facility that have received credit committee approval, and has mandated one bank for a subordinated debt facility.
The New Liberty Gold Project is located within the 100% owned Bea Mountain mining licence, which covers 457 km² and has a 25 year, renewable, mineral development agreement. The Bea Mountain mining license also hosts the proximal gold targets of Ndablama, Gondoja and Weaju, which are the focus of exploration programs during 2013. The contiguous Archaen Gold exploration licence, which covers 89 km², is also a focus of exploration for 2013, with Leopard Rock being the main target.
The Company also has gold exploration permits in Cameroon.
This press release contains certain forward-looking information. All information, other than information regarding historical fact, that addresses activities, events or developments that Aureus 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 Aureus and their anticipated future growth, mineral resource estimates and the anticipated exploration and development activities of Aureus. The foregoing and any other forward-looking information contained in this press release reflects the current expectations, assumptions or beliefs of Aureus based on information currently available to Aureus. With respect to the forward-looking information contained in this press release, Aureus has 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 Aureus’ respective 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: 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 Preliminary Prospectus of Aureus Inc. dated April 20, 2011, a copy of which is available on SEDAR at www.sedar.com, and in the Aureus 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 Aureus believes 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 Aureus, 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, Aureus 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.