AuRico Gold and Carlisle Goldfields form a Strategic Partnership in the Lynn Lake Gold District - TORONTO, November 11, 2014 /PRNewswire/ --
AuRico Gold Inc. (TSX: AUQ) (NYSE: AUQ), ("AuRico" or the "Company") today announced that it has entered into an agreement to subscribe for 70,600,000 common shares of Carlisle Goldfields Limited ("Carlisle"), at a price of C$0.08/share, for total consideration of approximately C$5.6 million (the "Private Placement"), subject to certain conditions including approval of the Toronto Stock Exchange. On closing of the Private Placement, AuRico will hold own 70,600,000 common shares of Carlisle, representing approximately 19.9% of the issued and outstanding common shares of Carlisle on a non-diluted basis.
In conjunction with the Private Placement, AuRico has entered into a joint venture agreement with respect to Carlisle's Lynn Lake Gold Camp ("Lynn Lake" or the "Project"), located in Lynn Lake, Manitoba, pursuant to 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 is a highly prospective past-producing gold camp consisting of five near surface deposits with significant existing infrastructure in place.
"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," stated Scott Perry, President and CEO.
Readers should refer to the section entitled "Early Warning Disclosure" provided in Appendix A at the end of this press release.
About AuRico Gold AuRico Gold is a leading Canadian gold producer with mines and projects in North America that have significant production growth and exploration potential. The Company is focused on its core operations including the Young-Davidson gold mine in northern Ontario, and the El Chanate mine in Sonora State, Mexico. AuRico's project pipeline also includes advanced development opportunities in Mexico and Canada. AuRico's head office is located in Toronto, Ontario, Canada.
Cautionary Statement
AuRico acquired ownership of the common shares of Carlisle that are the subject of this press release for investment purposes. AuRico intends to review its investments in Carlisle on a continuing basis....
This news release is not an admission that an entity named in the news release owns or controls any described securities or is a joint actor with another named entity.
AuRico's address is 110 Yonge Street, Suite 1601, Toronto, ON M5C 1T4.
or to obtain a copy of the early warning report to be filed by AuRico in connection with the foregoing, please contact:
Scott Perry Chief Executive Officer AuRico Gold Inc. +1-647-260-8880 Anne Day Vice President, Investor Relations and Communications AuRico Gold Inc. +1-647-260-8880