NEW YORK (TheStreet) -- Shares of AuRico Gold Inc. (AUQ) are up 11.53% to $3.58 after the Toronto-based gold producer announced today that it has entered into an agreement to subscribe for 70,600,000 common shares of Carlisle Goldfields Limited at a price of 8 Canadian cents a share, for total consideration of approximately C$5.6 million.
Additionally, AuRico announced a joint venture agreement with respect to Carlisle's Lynn Lake Gold Camp, in which AuRico will acquire a 25% interest in the project for an initial cash contribution of C$5 million, with the option to earn up to an additional 35% interest by funding C$20 million on the project over a three-year period and delivering a feasibility study within that time period.
Lynn Lake, located in Lynn Lake, Manitoba, is a highly prospective past-producing gold camp consisting of five near surface deposits with significant existing infrastructure in place, according to AuRico.
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"This transaction with Carlisle represents a compelling, but low risk opportunity to participate in the early stage advancement of a highly prospective mining district in Canada and is consistent with our strategic focus on high-quality assets in North America," CEO Scott Perry said.
Separately, TheStreet Ratings team rates AURICO GOLD INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation: