AuRico Gold (AUQ) Updates on Results of $300M 'Modified Dutch Auction' Tender

January 24, 2013 8:43 AM EST Send to a Friend
AuRico Gold (NYSE: AUQ) announced the preliminary results of its "modified Dutch auction" substantial issuer bid (the "Offer") to purchase for cancellation up to $300,000,000 of its outstanding common shares (the "Shares").

Shareholders of AuRico had the opportunity under the terms of the Offer to tender their Shares until 5:00p.m. EST on January 23, 2013 by electing an auction tender at a price of their choice between $8.30 and $9.30 per Share or, alternatively, by electing a purchase price tender at which they could sell their Shares at the Purchase Price (as defined below) to be determined by the Company pursuant to the Offer.

All the terms and conditions of the Offer have been complied with or waived and, based on a preliminary count by Computershare Investor Services Inc., as depositary for the Offer (the "Depositary"), AuRico expects to take up and pay for approximately 36,144,578 Shares at a price of $8.30 per Share (the "Purchase Price"). The Shares expected to be purchased under the Offer represent approximately 12.8% of the Shares issued and outstanding prior to giving effect to the Offer. After giving effect to the Offer, the number of issued and outstanding Shares is expected to be approximately 246,395,391.

Approximately 123,174,377 Shares were properly tendered to the Offer. As the Offer was oversubscribed, validly tendering shareholders at the Purchase Price will have the number of Shares purchased prorated following determination of the final results of the Offer, except that "odd lot" tenders (of holders beneficially owning fewer than 100 Shares) will not be subject to pro-ration. AuRico expects that tendering shareholders subject to pro-ration will have approximately 34% of their tendered Shares purchased by AuRico under the Offer.

The number of Shares to be purchased under the Offer, the pro-ration factor and the Purchase Price are preliminary. Final results will be determined subject to confirmation by the Depository of the proper delivery of the Shares validly tendered and not withdrawn. Upon take-up and payment of the Shares repurchased, AuRico will release the final results, including the final Purchase Price and pro-ration factor. Shares tendered to the Offer but not purchased will be returned to shareholders as soon as practicable.


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