Aureus becomes Avesoro Resources days after substantial raise

Aureus becomes Avesoro Resources days after substantial raise

Aureus Mining (TSX,AIM:AUE) has officially changed its company name to Avesoro Resources (TSX,AIM:ASO).

The announcement follows an equity fundraising of around US$76 million last week. $60 million of which came from a subscription by major shareholder MNG and the rest from a placing and broker option.

As part of an overall cost reduction programme, Avesoro is implementing an owner-operator model at its centrepiece New Liberty gold mine in Liberia.

The company has faced a turbulent period since opening New Liberty last year. The Ebola outbreak coupled with a bitter civil war were compounded by serious teething problems at the mine including a tailings failure.

Turkish conglomerate MNG acquired a 55% stake in Aureus in June this year, through a $30 million subscription, and has since provided some much-needed financial stability to get the flagship project back into shape.

Serhan Umurhan and Geoff Eyre were installed as chief executive and chief financial officer respectively after Aureus CEO David Reading stood down.

Umurhan, who is also general manager of MNG Gold, has said: “New Liberty is an attractive opportunity to add high quality ounces to our West African mining portfolio.

“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 owns the Youga gold mine in Burkina Faso, the Kokoya gold project in Liberia and exploration assets.