TORONTO, March 27, 2014 /PRNewswire/ --
Satisfaction of Financing Condition of Tender Offer for
Convertible Notes
AuRico Gold Inc. (TSX: AUQ) (NYSE: AUQ), AuRico Gold Inc.
("AuRico" or the "Company") today announces the closing of its
private offering of $315 million
aggregate principal amount of Senior Secured Second Lien Notes due
2020 (the "Notes"). The Notes were issued with a coupon of 7.75%
and sold at 96.524% of par, and are expected to result in net
proceeds to the Company of approximately $297 million, after deducting the initial
purchasers' discounts and estimated offering expenses payable by
the Company. AuRico intends to use the net proceeds of the Notes to
repurchase its Convertible Notes due 2016 (the "Convertible Notes")
that are tendered to AuRico's offer announced March 6, 2014 and which expires at 12:00
midnight Eastern Time on April 2, 2014, to purchase any and all of its
Convertible Notes, to fund principal and interest payments on any
Convertible Notes that remain outstanding following the offer to
purchase, to repay amounts outstanding under its existing senior
secured credit facility and for general corporate purposes, which
may include funding capital expenditures to support organic
growth.
The closing of the Notes offering satisfies the financing
condition of our tender offer for the Convertible Notes.
All amounts above are in U.S. dollars, unless otherwise
indicated.
About AuRico Gold
AuRico Gold is a leading Canadian gold producer with mines and
projects in North America that
have solid 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
Canada and Mexico. AuRico's head office is located in
Toronto, Ontario, Canada.
Forward-Looking
Information
This press release may contain "forward looking" statements,
including, without limitation, information as to strategy, plans or
future financial or operating performance, such as our growth
plans, project timelines, production plans, projected cash flows or
capital expenditures, cost estimates, mining or milling
projections, projected exploration results, resource and reserve
estimates and other statements that express management's
expectations or estimates of future performance. All statements in
this press release that address events or developments we expect to
occur, are "forward-looking statements." Forward-looking statements
are statements that are not historical facts and are generally, but
not always, identified by the words "expects," "plans,"
"anticipates," "believes," "intends," "estimates," "projects,"
"potential," "target," "plan," "scheduled," "forecast," "budget"
and similar expressions or their negative connotations, or that
events or conditions "will," "would," "may," "could," "should" or
"might" occur. All such forward-looking statements are based on the
opinions and estimates of our management as of the date such
statements are made. Forward-looking statements are necessarily
based on estimates and assumptions that are inherently subject to
known and unknown risks, uncertainties and other factors, many of
which are beyond our ability to control, that may cause our actual
results, level of activity, performance or achievements to be
materially different from those expressed or implied by such
forward-looking statements. Such factors include, without
limitation: uncertainty of production and cost estimates;
fluctuations in the price of gold; changes in foreign exchange
rates (particularly the Canadian dollar, Mexican peso and U.S.
dollar); the uncertainty of replacing depleted reserves and the
possible recalculation or reduction of reserves and resources; the
risk that the Young-Davidson and El Chanate mines may not perform
as planned; changes in national and local government legislation in
Canada, Mexico and other jurisdictions in which we may
carry on business in the future; risks of obtaining necessary
licenses, permits, authorizations and/or approvals from the
appropriate regulatory authorities for our operations and projects,
including the Kemess Underground Project; contests over title to
properties; the speculative nature of mineral exploration and
development; risks related to aboriginal or ejido title claims;
compliance risks with respect to current and future environmental
laws and regulations; disruptions affecting operations; business
opportunities that may be pursued by the Company; employee
relations; availability of and increased costs associated with
mining inputs and labor; uncertainty with the Company's ability to
secure capital to execute its business plans; volatility of the
Company's share price; any decision to declare or suspend a
quarterly dividend; the effect of future financings; litigation;
risk of loss due to sabotage and civil disturbances; the impact of
global liquidity and credit availability and the values of assets
and liabilities based on projected future cash flows; risks arising
from holding derivative instruments; risks arising from the absence
of hedging; adequacy of internal control over financial reporting;
changes in our credit rating; and the impact of inflation.
In addition, there are risks and hazards associated with the
business of mineral exploration, development and mining, including
environmental hazards, industrial accidents, unusual or unexpected
formations, pressures, cave-ins, flooding and gold bullion losses
(and the risk of inadequate insurance or inability to obtain
insurance to cover these risks) as well as other risks,
uncertainties and other factors.
Forward-looking statements are not guarantees of future
performance, and actual results and future events could materially
differ from those anticipated in such statements. All of the
forward-looking statements contained in this press release are
qualified by these and the foregoing cautionary statements.
Although we have attempted to identify important factors that
could cause actual results to differ materially from those
contained in the forward-looking statements, there may be other
factors that cause actual results to differ materially from those
which are anticipated, estimated, or intended. There can be no
assurance that such statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. You should not place undue reliance
on forward-looking statements. We expressly disclaim any intention
or obligation to update or revise any forward-looking statements
whether as a result of new information, events or otherwise, except
in accordance with applicable securities laws.
Except as required by law, we undertake no obligation to
publicly update or supplement forward looking statements, whether
as a result of new information, future events or otherwise. For a
further discussion of these and other factors that could impact our
future results, performance or transactions, see "Risks Factors" in
the Company's Annual Information Form for the year ended
December 31, 2013, incorporated by
reference into the Company's Annual Report on Form 40-F for the
year ended December 31, 2013.
For further information:
For further information please visit the AuRico Gold website at
http://www.auricogold.com or contact:
Anne Day
Vice President, Investor Relations & Communications
AuRico Gold Inc.
+1-647-260-8880