LONDON (Alliance News) - Aureus Mining Inc Tuesday said it has entered into an underwriting agreement with GMP Securities LP, Clarus Securities Inc and Numis Securities Ltd to raise gross proceeds of GBP9 million while International Finance Corp is planning a separate investment of GBP6.6 million.
The gold-mining company, with operations in Liberia and Cameroon, said that as part of the underwriting agreement, it will sell 33.4 million units, which are comprised of one share and one half of one common share purchase warrant of the company, at a price of 27 pence per unit to raise roughly GBP9 million.
The company said that it has also reached an agreement with International Finance Corp, the private sector arm of the World Bank Group, for a proposed subscription of 24.5 million units at the same issue price to raise gross proceeds of roughly GBP6.6 million.
Aureus Mining said the subscription process is subject to certain conditions but is expected to close by the end of June.
The company said the cash will be used to fund the capital requirements of its major New Liberty Gold Project in Liberia, which is currently running on time and on budget.
Aureus said the cash would also be used to continue its exploration activities, in particular continued drilling and the completion of a key assessment at its Ndablama site, further drilling at Weaju project and target generation work across the company's wider licence portfolio in Liberia and Cameroon.
Aureus shares were down 5.4% to 27.90 pence, putting it in the top AIM All-Share fallers in early trading Tuesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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