Increases Financial Flexibility and Strengthens Project Management Team
TORONTO, April 18, 2017 /CNW/ - AuRico Metals Inc. (TSX: AMI), ("AuRico" or the "Company") is pleased to announce that it has replaced its restricted cash on deposit with a surety bond, resulting in an increase of net cash available to the Company of approximately C$11.2 million. Additionally, AuRico has further strengthened its project management team with the recent hiring of Sean Masse as Mining Project Manager, and Mike Padula as Surface Construction Project Manager for the Kemess Underground Project.
Increased Financial Flexibility
Since inception, the Company has held C$18.7 million of cash on deposit as security for future reclamation and closure activities at the Kemess site. On April 18, 2017, the AuRico replaced this restricted cash on deposit with a surety bond and a total of C$18.7 million in cash on deposit was released to the Company. The Company has provided security to the surety bond underwriter in the form of a C$7.5 million letter of credit, collateralized with cash. As a result, the AuRico's available cash balance has increased by C$11.2 million. The Company has indemnified the surety bond underwriter for any reclamation or closure costs due at Kemess. The Company's guarantee under the surety bond expires on completion of these closure obligations.
AuRico is pleased to announce the appointments of Sean Masse, P. Eng., to the position of Mining Project Manager and Mike Padula, PMP, to the position of Surface Construction Project Manager. Both individuals will be reporting directly to John Fitzgerald, P. Eng., AuRico Metals' Chief Operating Officer.
Mr. Masse brings over 16 years of varied mining industry experience to the AuRico Metals team. Working for both owners and contractors most of his experience is in mining project delivery. Mr. Masse was a senior member of the team that successfully brought New Gold's New Afton panel cave mine into production. As both mine superintendent and mine manager at New Afton, Mr. Masse was involved in all aspects of the mine's construction and achievement of full and steady production. Most recently Mr. Masse has been working to build Cementation Canada's business in Western Canada.
Mike Padula is a 29 year project management veteran having worked on numerous development projects across Canada. Mr. Padula most recently worked as the Project Manager for Victoria Gold for the Eagle Gold Project in central Yukon and the Manager of mining wastes and water for MMG Limited's Izok Corridor Project in Nunavut. Mr. Padula was part of the senior management group for both AMEC Americas (now AMEC Foster Wheeler) and De Beers Canada on the Snap Lake Diamond Project which advanced the exploration project through to construction. Mr. Padula has also worked on a variety of mining and industrial projects for AMEC Americas and other consulting/construction companies.
Chris Richter, President and CEO, stated, "On behalf of AuRico's management and Board of Directors, we would like to welcome both Sean and Mike to the Company and look forward to their contributions as we continue to advance our stand-out Kemess Gold-Copper project in British Columbia."
About AuRico Metals
AuRico Metals is a mining development and royalty company with a 100% interest in the Kemess property in British Columbia, Canada. The Kemess property hosts the feasibility-stage Kemess Underground Gold-Copper Project, the Kemess East Exploration Project, and the infrastructure pertaining to the past producing Kemess South mine. AuRico's royalty portfolio includes a 1.5% NSR royalty on the Young-Davidson Gold Mine and a 2% NSR royalty on the Fosterville Mine, as well as a portfolio of additional producing and pre-production royalty assets located in North America and Australia.
Cautionary Statement on Forward-Looking Information
This press release contains forward-looking statements and forward-looking information as defined under Canadian and U.S. securities laws. All statements, other than statements of historical fact, are, or may be deemed to be, forward-looking statements. The words "expect", "believe", "anticipate", "will", "intend", "estimate", "forecast", "budget" and similar expressions identify forward-looking statements. These statements are based on a number of factors and assumptions that, while considered reasonable by management at the time of making such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements.
Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained herein. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this press release are qualified by these cautionary statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
SOURCE AuRico Metals
please visit the AuRico Metals website at www.auricometals.ca or contact: Chris Richter, President and Chief Executive Officer, AuRico Metals Inc., 416-216-2780, firstname.lastname@example.org; David Flahr, Vice President, Finance, AuRico Metals Inc., 416-216-2780, email@example.com