15 Jun Turkish conglomerate acquires 55% of Aureus Mining
Aureus Mining (LSE,TSX:AUE) has entered into an agreement for an equity financing with Turkish conglomerate MNG Gold through a US$30 million share subscription.
Aureus constructed the New Liberty mine in Liberia but due to commissioning delays, commercial production fell behind schedule in March and processing has shut down since May.
“Within five years, the Aureus team has overseen the exploration, development and commissioning of New Liberty, Liberia’s first ever commercial gold mine,” said Aureus chairman David Netherway. “During this time, the Company has faced the significant challenges of the tragic Ebola virus and the financial constraints of the global mining downturn.”
The funds from MNG will allow New Liberty to resume production this month and pay off creditors.
“New Liberty is an attractive opportunity to add high quality ounces to our West African mining portfolio,” said Serhan Umurhan, general manager of MNG. “We see significant growth potential for New Liberty, supported by our strong financial position, global mining expertise and synergies with our other Liberian operation.”
MNG Gold has exploration, development and production assets in Turkey, Burkina Faso and Liberia.