TORONTO, August 8, 2016 /PRNewswire/ --
/NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR DISSEMINATION
IN THE UNITED
STATES/
AuRico Metals Inc. (TSX: AMI), ("AuRico" or the
"Company") reports that further to its previously announced bought
deal with a syndicate of underwriters (the "Underwriters")
co-led by National Bank Financial Inc. and Macquarie Capital
Markets Canada Ltd. under which the Underwriters have agreed to
buy, on a bought deal basis, 10,000,000 common shares ("Common
Shares") at a price of C$1.00 per
Common Share (the "Offering"), the Company is pleased to announce
that Alamos Gold Inc. ("Alamos") has indicated that it intends to
exercise its participation right in full to maintain its pro-rata
interest in AuRico in connection with the Offering.
As a result, Alamos will subscribe for 1,106,618 common shares
for aggregate gross proceeds of C$1,106,618 (plus up to an additional 165,993
common shares for additional proceeds of C$165,994 if the over-allotment option under the
Offering is exercised in full by the Underwriters)(the "Alamos
Private Placement").
The Offering and the Alamos Private Placement are each
anticipated to close (the "Closing") on or about August 22, 2016 and are subject to certain
conditions including, but not limited to, the receipt of all
necessary approvals including the approval of the Toronto Stock
Exchange ("TSX"). The Alamos Private Placement is a non-brokered
private placement and is not part of the Offering.
The net proceeds from the Offering and from the Alamos Private
Placement will be used to fund the potential acquisition of
additional royalties, the advancement of permitting activities and
detailed engineering at the Kemess Underground project, as well as
for working capital and general corporate purposes.
The securities offered have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold
in the United States absent
registration or any applicable exemption from the registration
requirements. This press release does not constitute an offer to
sell or the solicitation of an offer to buy nor will there be any
sale of the securities in any state in which such offer,
solicitation or sale would be unlawful.
About AuRico Metals
AuRico Metals is a mining royalty and development company whose
producing gold royalty assets include a 1.5% NSR royalty on the
Young-Davidson Gold Mine, a 0.25% NSR royalty on the Williams Mine
at Hemlo, and a 0.5% NSR royalty
on the Eagle River Mine - all located in Ontario, Canada. AuRico Metals also has a 2%
NSR royalty on the Fosterville Mine and a 1% NSR royalty on the
Stawell Mine, located in Victoria,
Australia. Aside from its diversified royalty portfolio,
AuRico owns (100%) the advanced Kemess Gold-Copper Project in
British Columbia,
Canada. AuRico Metals' head office is located in Toronto, Ontario, Canada.
Cautionary Statement
This news release contains "forward-looking information"
which may include, but is not limited to, statements with respect
to the future financial or operating performance of the Company and
its projects, as well as the completion of the Offering and the
Alamos Private Placement and the use of proceeds therefrom. Often,
but not always, forward-looking statements can be identified by the
use of words such as "plans", "expects", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates", or
"believes" or variations (including negative variations) of such
words and phrases, or state that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved. Forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Forward-looking statements contained herein are made as
of the date of this press release and the Company disclaims any
obligation to update any forward-looking statements, whether as a
result of new information, future events or results or otherwise.
There can be no assurance that forward-looking statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements. The
Company undertakes no obligation to update forward-looking
statements if circumstances, management's estimates or opinions
should change, except as required by securities legislation.
Accordingly, the reader is cautioned not to place undue reliance on
forward-looking statements. The Company believes that, in addition
to conventional measures prepared in accordance with IFRS, certain
investors use this information to evaluate the Company's
performance and ability to generate cash flow.
Please contact: Chris Richter,
President and Chief Executive Officer, AuRico Metals Inc.,
+1-416-216-2780, chris.richter@auricometals.ca; David Flahr, Vice President, Finance, AuRico
Metals Inc., +1-416-216-2780, david.flahr@auricometals.ca