TIDMAAAM
RNS Number : 0507C
African Aura Mining Inc.
01 March 2011
NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION
TO US NEWS WIRE SERVICES.
March 01, 2011
TSX-V: AUR
AIM: AAAM
African Aura Mining Inc.
RECEIPT OF INTERIM ORDER APPROVING SHAREHOLDER MEETING
March 01, 2011, African Aura Mining Inc. ("African Aura" or the
"Company"), the TSX-V (AUR) and AIM (AAAM) listed exploration and
development company with divisions focused on iron ore and gold
projects in sub-Saharan Africa, announces that, further to its
press releases dated November 5, 2010 and February 28, 2011, it has
obtained an interim order of the Supreme Court of British Columbia
providing for, among other things, the calling and holding of a
meeting of African Aura's shareholders (the "Meeting") to consider
a restructuring of African Aura's assets (the "Arrangement").
Pursuant to the Arrangement, the interest of African Aura in its
gold assets (including the New Liberty Gold Project in Liberia),
approximately 22.1% of the outstanding ordinary shares of Stellar
Diamonds plc and cash and cash equivalents equal to 40% of African
Aura's total cash balance as at the effective time of the
Arrangement (the "Effective Time") will be acquired by Aureus
Mining Inc. ("Aureus Mining"). Pursuant to the Arrangement, each
shareholder of African Aura will be entitled to receive one new
common share of African Aura and one common share of Aureus Mining
for each common share of African Aura held by such shareholder at
the Effective Time. Upon completion of the Arrangement, African
Aura will be renamed "Afferro Mining Inc." and will continue to
hold its iron ore projects, which include the Putu Project in
Liberia and the Nkout Project in Cameroon, and will retain the
remainder of its cash and cash equivalents.
African Aura has scheduled the Meeting for April 5, 2011, at
which shareholders of record on February 25, 2011 will consider,
among other matters, the Arrangement. Meeting materials will be
mailed shortly and are expected to be available on SEDAR
(www.sedar.com) under African Aura's profile on or about March 4,
2011 and will be available on the Company's website
(www.african-aura.com).
The completion of the Arrangement is conditional upon the
satisfaction of certain conditions precedent, including shareholder
approval, final approval of the Supreme Court of British Columbia
and the Toronto Stock Exchange (the "TSX") having conditionally
approved the listing thereon of the Aureus Mining common shares to
be received by African Aura's shareholders pursuant to the
Arrangement, subject only to compliance with the usual requirements
of the TSX. Please see the Company's press release dated February
28, 2011 for further information in this regard. Application will
also be made to the AIM market of the London Stock Exchange ("AIM")
for the admission thereon of the Aureus Mining common shares, which
admission will be subject to, among other things, Aureus Mining
satisfying the admission requirements of AIM.
About African Aura Mining Inc.
African Aura is an established exploration and development
company listed on the TSX-V (AUR) and London's AIM (AAAM). The
Company operates two divisions that are intended to be split into
separate listed companies becoming effective, subject to
shareholder, regulatory and other approvals in April 2011:
- The iron ore division includes its 38.5% interest in the 2.4Bt
Putu iron ore project in Liberia, which is subject to a resource
expansion drilling programme and moving through pre-feasibility
managed by joint venture partner Severstal Resources (the mining
division of London and Moscow listed OAO Severstal). In September
2010, Putu was granted a 25 year renewable Mineral Development
Agreement by the Government of Liberia. The division also includes
a 100% interest in the Nkout 1Bt iron ore project and surrounding
iron targets in Cameroon which is subject to a resource expansion
drilling programme.
- The gold assets, to be held in "Aureus Mining Inc." when
listed independently, include the New Liberty gold deposit in
western Liberia which has a resource of 1.51 million ounces of gold
grading 3.78 g/t (comprising 5,599,000 tonnes grading 4.17 g/t in
the indicated category and 7,040,000 tonnes grading 3.40 g/t in the
inferred category) which is being advanced through a bankable
feasibility study, and the proximal Ndablama, Weaju, Silver Hills
and Gondoja gold projects all within the Company's Bea Mountain 25
year renewable Mineral Development Agreement.
In addition, the Company has a 22% interest in AIM-listed
diamond producer Stellar Diamonds Plc (AIM: STEL,
www.stellar-diamonds.com). It is proposed that, following
completion of the Arrangement, this holding will be held by Aureus
Mining Inc.
The Company has a highly motivated and experienced team with a
track record of discovering mines and taking projects through
development and into production. As a pioneer, African Aura has
attracted some excellent strategic partners and shareholders,
always with the objective of preserving or enhancing shareholder
value. For further information on the Company you are invited to
visit its website at www.african-aura.com, or SEDAR's website at
www.sedar.com, or contact one of the following:
African Aura Mining Inc.
Luis da Silva, President & CEO
Tel: +44 (0) 20 7257 2930
Evolution Securities Limited
Rob Collins / Tim Redfern
Tel: +44 (0) 20 7071 4300
Pelham Bell Pottinger
Charles Vivian / James MacFarlane
Tel: +44 (0) 20 7861 3232
Forward-Looking Information
This press release contains certain forward-looking information.
All information, other than information regarding historical fact,
that addresses activities, events or developments that the Company
believes, expects or anticipates will or may occur in the future is
forward-looking information. Forward-looking information contained
in this press release includes, but may not be limited to: the
future plans and objectives of African Aura and Aureus Mining,
including the completion of the proposed Arrangement and the terms,
timing and consequences relating thereto; the listing of the common
shares of Aureus Mining; and the timing of the Meeting and the
mailing and availability of materials relating thereto. The
foregoing and other forward-looking information contained in this
press release reflects the current expectations, assumptions or
beliefs of African Aura based on information currently available to
African Aura. With respect to the forward-looking information
contained in this press release, African Aura has made assumptions
regarding, among other things: general business, economic and
mining industry conditions; the completion of the Arrangement,
including the satisfaction of all conditions precedent thereto,
such as the receipt of all necessary approvals to proceed
therewith; the Company's ongoing exploration and development
activities; and it has also been assumed that no material adverse
change in the price of precious and/or base metals occurs and no
significant events occur outside of African Aura's normal course of
business.
Such forward-looking information is subject to a number of risks
and uncertainties that may cause actual results or events to differ
materially from current expectations, including: delays in
obtaining, or a failure to obtain, required regulatory approvals
(including the approval of the TSX and AIM with respect to the
listing and admission, respectively, of the Aureus Mining common
shares to be received by African Aura's shareholders as part of the
Arrangement); the Company's inability to complete the Arrangement
or obtain a favourable confirmation from the Canada Revenue Agency
regarding the tax consequences of the Arrangement; risks normally
incidental to exploration and development of mineral properties;
adverse changes in precious and/or base metal prices; and future
unforeseen liabilities and other factors including, but not limited
to, those listed under "Risk Factors" in the Company's Annual
Information Form dated April 30, 2010 available under the Company's
profile on SEDAR at www.sedar.com.
Forward-looking information speak only as of the date on which
it is made and, except as may be required by applicable law,
African Aura disclaims any obligation to update or modify such
forward-looking information, either as a result of new information,
future events or for any other reason.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accept responsibility for the adequacy or
accuracy of this release.
Ends
This information is provided by RNS
The company news service from the London Stock Exchange
END
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