Satisfaction of Financing Condition of Tender Offer for Convertible
Notes
TORONTO, March 27, 2014 /PRNewswire/ - AuRico Gold Inc. (TSX: AUQ) (NYSE: AUQ), AuRico Gold Inc. ("AuRico" or the "Company") today announces the closing
of its private offering of $315 million aggregate principal amount of
Senior Secured Second Lien Notes due 2020 (the "Notes"). The Notes were
issued with a coupon of 7.75% and sold at 96.524% of par, and are
expected to result in net proceeds to the Company of approximately $297
million, after deducting the initial purchasers' discounts and
estimated offering expenses payable by the Company. AuRico intends to
use the net proceeds of the Notes to repurchase its Convertible Notes
due 2016 (the "Convertible Notes") that are tendered to AuRico's offer
announced March 6, 2014 and which expires at 12:00 midnight Eastern
Time on April 2, 2014, to purchase any and all of its Convertible
Notes, to fund principal and interest payments on any Convertible Notes
that remain outstanding following the offer to purchase, to repay
amounts outstanding under its existing senior secured credit facility
and for general corporate purposes, which may include funding capital
expenditures to support organic growth.
The closing of the Notes offering satisfies the financing condition of
our tender offer for the Convertible Notes.
All amounts above are in U.S. dollars, unless otherwise indicated.
About AuRico Gold
AuRico Gold is a leading Canadian gold producer with mines and projects
in North America that have solid production growth and exploration
potential. The Company is focused on its core operations including the
Young-Davidson gold mine in northern Ontario and the El Chanate mine in
Sonora State, Mexico. AuRico's project pipeline also includes advanced
development opportunities in Canada and Mexico. AuRico's head office is
located in Toronto, Ontario, Canada.
Forward-Looking Information
This press release may contain "forward looking" statements, including,
without limitation, information as to strategy, plans or future
financial or operating performance, such as our growth plans, project
timelines, production plans, projected cash flows or capital
expenditures, cost estimates, mining or milling projections, projected
exploration results, resource and reserve estimates and other
statements that express management's expectations or estimates of
future performance. All statements in this press release that address
events or developments we expect to occur, are "forward-looking
statements." Forward-looking statements are statements that are not
historical facts and are generally, but not always, identified by the
words "expects," "plans," "anticipates," "believes," "intends,"
"estimates," "projects," "potential," "target," "plan," "scheduled,"
"forecast," "budget" and similar expressions or their negative
connotations, or that events or conditions "will," "would," "may,"
"could," "should" or "might" occur. All such forward-looking statements
are based on the opinions and estimates of our management as of the
date such statements are made. Forward-looking statements are
necessarily based on estimates and assumptions that are inherently
subject to known and unknown risks, uncertainties and other factors,
many of which are beyond our ability to control, that may cause our
actual results, level of activity, performance or achievements to be
materially different from those expressed or implied by such
forward-looking statements. Such factors include, without limitation:
uncertainty of production and cost estimates; fluctuations in the price
of gold; changes in foreign exchange rates (particularly the Canadian
dollar, Mexican peso and U.S. dollar); the uncertainty of replacing
depleted reserves and the possible recalculation or reduction of
reserves and resources; the risk that the Young-Davidson and El Chanate
mines may not perform as planned; changes in national and local
government legislation in Canada, Mexico and other jurisdictions in
which we may carry on business in the future; risks of obtaining
necessary licenses, permits, authorizations and/or approvals from the
appropriate regulatory authorities for our operations and projects,
including the Kemess Underground Project; contests over title to
properties; the speculative nature of mineral exploration and
development; risks related to aboriginal or ejido title claims;
compliance risks with respect to current and future environmental laws
and regulations; disruptions affecting operations; business
opportunities that may be pursued by the Company; employee relations;
availability of and increased costs associated with mining inputs and
labor; uncertainty with the Company's ability to secure capital to
execute its business plans; volatility of the Company's share price;
any decision to declare or suspend a quarterly dividend; the effect of
future financings; litigation; risk of loss due to sabotage and civil
disturbances; the impact of global liquidity and credit availability
and the values of assets and liabilities based on projected future cash
flows; risks arising from holding derivative instruments; risks arising
from the absence of hedging; adequacy of internal control over
financial reporting; changes in our credit rating; and the impact of
inflation.
In addition, there are risks and hazards associated with the business of
mineral exploration, development and mining, including environmental
hazards, industrial accidents, unusual or unexpected formations,
pressures, cave-ins, flooding and gold bullion losses (and the risk of
inadequate insurance or inability to obtain insurance to cover these
risks) as well as other risks, uncertainties and other factors.
Forward-looking statements are not guarantees of future performance, and
actual results and future events could materially differ from those
anticipated in such statements. All of the forward-looking statements
contained in this press release are qualified by these and the
foregoing cautionary statements.
Although we have attempted to identify important factors that could
cause actual results to differ materially from those contained in the
forward-looking statements, there may be other factors that cause
actual results to differ materially from those which are anticipated,
estimated, or intended. There can be no assurance that such statements
will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements. You should
not place undue reliance on forward-looking statements. We expressly
disclaim any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
events or otherwise, except in accordance with applicable securities
laws.
Except as required by law, we undertake no obligation to publicly update
or supplement forward looking statements, whether as a result of new
information, future events or otherwise. For a further discussion of
these and other factors that could impact our future results,
performance or transactions, see "Risks Factors" in the Company's
Annual Information Form for the year ended December 31, 2013,
incorporated by reference into the Company's Annual Report on Form 40-F
for the year ended December 31, 2013.
SOURCE AuRico Gold Inc.