This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

AuRico Gold Announces Successful $300 Million Substantial Issuer Bid

(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.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs