(all amounts are in US dollars unless otherwise indicated)
TORONTO, Jan. 24, 2013 /PRNewswire/ - AuRico Gold Inc. (TSX: AUQ) (NYSE: AUQ), ("AuRico" or "the Company") today announced the preliminary results of its "modified Dutch auction" substantial issuer bid (the "Offer") to purchase for cancellation up to $300,000,000 of its outstanding common shares (the "Shares").
Shareholders of AuRico had the opportunity under the terms of the Offer to tender their Shares until 5:00p.m. EST on January 23, 2013 by electing an auction tender at a price of their choice between $8.30 and $9.30 per Share or, alternatively, by electing a purchase price tender at which they could sell their Shares at the Purchase Price (as defined below) to be determined by the Company pursuant to the Offer.
All the terms and conditions of the Offer have been complied with or waived and, based on a preliminary count by Computershare Investor Services Inc., as depositary for the Offer (the "Depositary"), AuRico expects to take up and pay for approximately 36,144,578 Shares at a price of $8.30 per Share (the "Purchase Price"). The Shares expected to be purchased under the Offer represent approximately 12.8% of the Shares issued and outstanding prior to giving effect to the Offer. After giving effect to the Offer, the number of issued and outstanding Shares is expected to be approximately 246,395,391."We are very pleased with the success of this share repurchase program as it delivers the first step in our commitment to shareholder friendly initiatives. The Substantial Issuer Bid has allowed the Company to return $300 million in excess capital to our shareholders and will reduce our issued shares outstanding by approximately 13%. This reduced share count will further leverage shareholders' "per share" exposure to the Company's growing production and cash flow profile as well as other profitability metrics. Additionally, as part of our ongoing commitment to shareholder returns, the Company intends to announce the details of an ongoing dividend policy before the end of March," said Scott Perry, President and CEO. He continued, "We have begun 2013 with a portfolio of quality assets, a strong organic growth profile and a management team committed to delivering shareholder value." Approximately 123,174,377 Shares were properly tendered to the Offer. As the Offer was oversubscribed, validly tendering shareholders at the Purchase Price will have the number of Shares purchased prorated following determination of the final results of the Offer, except that "odd lot" tenders (of holders beneficially owning fewer than 100 Shares) will not be subject to pro-ration. AuRico expects that tendering shareholders subject to pro-ration will have approximately 34% of their tendered Shares purchased by AuRico under the Offer.
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