AuRico Gold to Sell Ocampo Mine; Enters Joint Venture Agreement on Orion Project

By Staff,

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AuRico Gold Inc. ( AUQ ) has entered into a definitive agreement pursuant to which Minera Frisco, S.A.B. de C.V. will acquire the Ocampo mine and a 50% interest in the Orion advanced development project for a total cash consideration of $750 million.

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.

AUQ went up by nearly 8% to $6.92 in after-hours trade, moving further away from year low $5.25.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: AUQ

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