AuRico (AUQ) Pops Higher on $750M Ocampo Mine, Assets Sale
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AuRico Gold Inc. (NYSE: AUQ) shares are popping higher Wednesday following an announcement Tuesday night that it would be selling its Ocampo mine and related assets. Total value of the deal is $750 million.
Canaccord Genuity also upgraded the stock earlier.
The release follows:
[AuRico Gold Inc.] is pleased to announce that it has entered into a definitive agreement pursuant to which Minera Frisco, S.A.B. de C.V. will acquire the Ocampo mine and the adjacent exploration projects "Venus" and "Los Jarros" all located in Chihuahua State, Mexico and a 50% interest in the Orion advanced development project located in Nayarit State, Mexico from AuRico Gold, for a total cash consideration of $750 million.
Minera Frisco (BMV: MFRISCO, OTC: MSNFY) is a leading Mexican mining company that was spun out of Grupo Carso S.A. de C.V. (BMV: GCARSO, OTC: GPOVY) in November 2010 and is listed on the Mexican Stock Exchange with a current market capitalization of approximately $10.7 billion. The transaction is expected to close in December 2012.
Upon closing of the Transaction, the Company expects to use the net proceeds from the Transaction to eliminate certain debt obligations, invest in internal growth opportunities, provide sufficient working capital and liquidity for the Company going forward and to undertake a significant return of capital to shareholders.
The Transaction is subject to certain closing conditions, including a standard review by the competition and anti-trust commission of Mexico and the approval of a simple majority of Minera Frisco's shareholders. The Transaction is not subject to any financing conditions.
Advisors and Counsel
Credit Suisse Securities (Canada), Inc. is retained by AuRico Gold to act as its financial advisor and has provided a fairness opinion to AuRico's Board of Directors. Credit Suisse Securities (Canada), Inc. has provided an opinion that, based upon and subject to the assumptions, limitations, and qualifications stated in such opinion, the consideration to be received by the Company pursuant to the Transaction is fair from a financial point of view to the Company.
BMO Capital Markets and CIBC World Markets Inc. are acting as financial advisors to the Special Committee of AuRico's Board of Directors. BMO Capital Markets and CIBC World Markets Inc. have each provided an opinion to the effect that, as of the date of such opinion and subject to the assumptions, limitations and qualifications contained in such opinion, the consideration to be received by the Company pursuant to the Transaction is fair, from a financial point of view, to the Company.
Fasken Martineau LLP is acting as legal counsel to AuRico and Davies Ward Phillips & Vineberg LLP is acting as legal counsel to the Special Committee of AuRico's Board of Directors.
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Canaccord Genuity also upgraded the stock earlier.
The release follows:
[AuRico Gold Inc.] is pleased to announce that it has entered into a definitive agreement pursuant to which Minera Frisco, S.A.B. de C.V. will acquire the Ocampo mine and the adjacent exploration projects "Venus" and "Los Jarros" all located in Chihuahua State, Mexico and a 50% interest in the Orion advanced development project located in Nayarit State, Mexico from AuRico Gold, for a total cash consideration of $750 million.
Minera Frisco (BMV: MFRISCO, OTC: MSNFY) is a leading Mexican mining company that was spun out of Grupo Carso S.A. de C.V. (BMV: GCARSO, OTC: GPOVY) in November 2010 and is listed on the Mexican Stock Exchange with a current market capitalization of approximately $10.7 billion. The transaction is expected to close in December 2012.
Upon closing of the Transaction, the Company expects to use the net proceeds from the Transaction to eliminate certain debt obligations, invest in internal growth opportunities, provide sufficient working capital and liquidity for the Company going forward and to undertake a significant return of capital to shareholders.
The Transaction is subject to certain closing conditions, including a standard review by the competition and anti-trust commission of Mexico and the approval of a simple majority of Minera Frisco's shareholders. The Transaction is not subject to any financing conditions.
Advisors and Counsel
Credit Suisse Securities (Canada), Inc. is retained by AuRico Gold to act as its financial advisor and has provided a fairness opinion to AuRico's Board of Directors. Credit Suisse Securities (Canada), Inc. has provided an opinion that, based upon and subject to the assumptions, limitations, and qualifications stated in such opinion, the consideration to be received by the Company pursuant to the Transaction is fair from a financial point of view to the Company.
BMO Capital Markets and CIBC World Markets Inc. are acting as financial advisors to the Special Committee of AuRico's Board of Directors. BMO Capital Markets and CIBC World Markets Inc. have each provided an opinion to the effect that, as of the date of such opinion and subject to the assumptions, limitations and qualifications contained in such opinion, the consideration to be received by the Company pursuant to the Transaction is fair, from a financial point of view, to the Company.
Fasken Martineau LLP is acting as legal counsel to AuRico and Davies Ward Phillips & Vineberg LLP is acting as legal counsel to the Special Committee of AuRico's Board of Directors.
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