October 9, 2012
(all amounts are in U.S. dollars unless otherwise indicated)
AuRico Gold Inc. (TSX:AUQ) (NYSE: AUQ), ("AuRico Gold" or "the Company")
is pleased to announce that it has entered into a definitive agreement pursuant to which
, S.A.B. de C.V. ("
") will acquire the
mine and the adjacent exploration projects "Venus" and "Los Jarros" all located in Chihuahua State,
and a 50% interest in the Orion advanced development project located in Nayarit State,
from AuRico Gold, for a total cash consideration of
(BMV: MFRISCO, OTC: MSNFY) is a leading Mexican mining company that was spun out of Grupo Carso S.A. de C.V. (BMV: GCARSO, OTC: GPOVY) in
and is listed on the Mexican Stock Exchange with a current market capitalization of approximately
. The transaction is expected to close in
Upon closing of the Transaction, the Company expects to use the net proceeds from the Transaction to eliminate certain debt obligations, invest in internal growth opportunities, provide sufficient working capital and liquidity for the Company going forward and to undertake a significant return of capital to shareholders.
, President and CEO of AuRico Gold commented, "
presented a compelling, all-cash offer that will strengthen the Company's balance sheet and repositions AuRico to execute on its strategy of delivering consistent, reliable and sustainable production from our two core assets in
. The Transaction will allow us to deliver a meaningful return of capital to our shareholders, significantly enhance our liquidity position, give us considerable financial flexibility to support our current operations and examine brownfield expansion opportunities. Following the Transaction, the Company will be well positioned to meet its key objectives of growing its profitability and cash flow through the long life, low cost
and El Chanate operations located in low risk jurisdictions while maintaining a strong organic growth profile primarily driven by increasing production at
. In addition, we have gained a solid partner to further evaluate and potentially advance the Orion project in the coming years through the joint venture with
The Transaction is subject to certain closing conditions, including a standard review by the competition and anti-trust commission of
and the approval of a simple majority of
shareholders. The Transaction is not subject to any financing conditions.
Advisors and Counsel