TIDMAAAM
RNS Number : 0164X
African Aura Mining Inc.
30 November 2010
NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION
TO US NEWS WIRE SERVICES.
TSX-V: AUR
AIM: AAAM
November 30, 2010
AFRICAN AURA MINING INC.
("African Aura" or the "Company")
Publication of Quarter 3 2010 Accounts
The Board of African Aura is pleased to release the Unaudited
Interim Consolidated Financial Statements of the Company for the
quarter ended, September 30, 2010 which should be read in
conjunction with the accompanying Management Discussion and
Analysis. These documents have been filed on Sedar and are
available on the Company's website (http://www.african-aura.com) or
at www.sedar.com.
Luis da Silva, President and CEO of African Aura commented:
"The Company is now well positioned in its chosen commodities of
gold and iron ore to pursue strategies that will maximise its
value. The Board believes that the current value of the Company
does not recognise fully its key assets. With this in mind the
Board is planning to unlock the value of its iron ore and gold
properties by separating these assets into two listed companies.
African Aura will focus on developing the iron ore assets while a
newly created company, Aureus Mining, will advance the gold
assets.
Meanwhile, at project level, the Putu iron ore project in
Liberia, in which the Company has a 38.5% interest, is making
excellent progress. The pre-feasibility drilling is ahead of
schedule with the remaining 40 000 metres of drilling, to be
completed in 2011 with the objective of delivering an indicated
resource estimate in the second half of next year.
The Nkout Iron ore project in the Cameroon is an exciting
prospect over which the Company commenced a resource drilling
programme in late July having completed an airborne survey in April
2010. The drilling at Nkout is designed to deliver an inferred
resource estimate in the first quarter of 2011 with an upgrade to
indicated resource by the end of 2011.
Following the upgrade in the resource estimate at New Liberty,
reported in November, the next key milestones are the Preliminary
Economic Assessment to be released in December 2010 followed by a
definitive feasibility study ("DFS") in Q3 2011. The DFS at New
Liberty will include further drilling to identify more ounces of
gold and upgrade the resource to reserve status. The environmental
and social impact assessment which is a key aspect of the DFS
already commenced in August 2010. Exploration drilling will
continue at the satellite prospects surrounding New Liberty with
the aim of delivering 1 million ounces of additional resource.
The Company realises the importance of having the necessary
skills and experience in the Company to deliver the key milestones.
With this in mind the Company recently announced the appointment of
David Reading as an independent director to the Board. When Aureus
Mining is listed, David will lead this Company in the capacity of
CEO. David has significant expertise in the global mining industry
with over 35 years' experience across the fields of exploration,
feasibility, project development and mining. In addition,
simultaneously to this appointment, Dr Martin White joined the
Company as DFS Project Manager.
To complement the project requirements, the Company needed to be
fully funded. To this end, on Friday, 26 November 2010, the Company
announced and successfully completed an underwritten accelerated
bookbuild for US$32 million. I am pleased to say that the fund
raising was substantially over-subscribed with the book closing in
a matter of two hours demonstrating the strides made on the ground
and from an investor perspective. The additional 13.5 million
common shares were placed in London at 150 pence per common shares
representing a 2.3% discount to the previous day's closing. The
admission of these new shares is expected to become effective this
week and that dealings will commence on 2 December 2010. Completion
of the Placing is also subject to receipt of applicable regulatory
approvals, including the approval of the TSX Venture Exchange.
Finally, since the Company reported its Q2 results on August 30,
the Board is pleased to report that the market capitalisation of
the Company has almost doubled from Cdn$92 million to Cdn$177
million at the time of writing this announcement, and reached a
record high of Cdn$198 million in early November. This was based on
delivering results from the projects and meeting the stated project
timelines. The Board is confident that the proposed restructuring
plans previously announced will further enhance shareholder
value."
On behalf of the Board of African Aura Mining Inc.
Luis da Silva
President and CEO
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, namely: iron ore and gold:
-- The iron ore division includes its 38.5% interest in the Putu
iron ore project in Liberia, which is moving through
pre-feasibility managed by joint venture partner Severstal
Resources (the mining division of 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 iron ore project and
surrounding iron targets in Cameroon which is subject to a resource
definition drilling programme.
-- The gold division includes the multi million ounce potential
New Liberty greenstone gold deposit, 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 number of gold projects in
the Cameroon.
In addition, the Company presently has a 22% interest in
AIM-listed diamond producer Stellar Diamonds Plc (AIM: STEL,
www.stellar-diamonds.com).
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
Simon Edwards / Tim Redfern Tel: +44 (0) 20 7071 4300
Pelham Bell Pottinger
Charles Vivian / James MacFarlane Tel: +44 (0) 20 7861 3232
Forward-looking Statements
This press release includes certain forward-looking statements.
All statements, other than statements of historical fact, included
herein, including without limitation, statements regarding the
future plans and objectives of African Aura, are forward-looking
statements that involve various known and unknown risks and
uncertainties as well as other factors. Such forward-looking
statements are 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 failure to
obtain required regulatory approvals. There can be no assurance
that such statements will prove to be accurate and actual results
and future events could differ materially from those anticipated in
such statements. Any forward-looking statements speak only as of
the date hereof and, except as may be required by applicable law,
African Aura disclaim any obligation to update or modify such
forward-looking statements, 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) accepts 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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