Aureus Mining Inc. Sarama Closing and Employees Options Grant (9391K)

TIDMAUE

RNS Number : 9391K

Aureus Mining Inc.

06 January 2016

06 January 2016

Aureus Mining Inc.

TSX : AUE

AIM : AUE

COMPLETION OF THE ACQUISITION OF THE SARAMA RESOURCES LIBERIAN LICENCES AND GRANT OF OPTIONS TO DIRECTORS AND EMPLOYEES

Aureus Mining Inc., ("Aureus" or the "Company"), the TSX and AIM listed West African Gold Producer, is pleased to announce that the Company has completed the previously announced acquisition of three exploration licences from Sarama Investments Limited ("Sarama"), a wholly-owned subsidiary of Sarama Resources Ltd, for a total consideration of 6,645,070 Aureus common shares ("Shares").

The acquired licences are contiguous to the Company's Bea Mountain Mining Licence and are located close to the New Liberty Gold Mine. As a result of the acquisition, the Company's total land portfolio in Liberia has increased to 1,683 Km(2) from 1,402Km(2) . A map of the Company's licence holding, including the newly acquired licences can be found at the link below:

http://aureus-mining.com/wp-content/uploads/2015/11/Regional_Geology_Aureus_Portfolio.png

On initial closing 5,648,310 Shares have been issued to Sarama, with the remaining 996,760 Shares retained and not issued until the required withholding tax clearance certificate is obtained. Application has been made to the London Stock Exchange for admission to trading of the first tranche of 5,648,310 Shares on AIM ("Admission"). It is expected that Admission of the first tranche of Shares issued to Sarama will become effective on or around the 7 January 2016, and the Shares will be subject to a statutory four month hold period from the date of issue (the second tranche of Shares will also be subject to a statutory four month hold period from the date of issue).

Accordingly, the figure of 541,816,572 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company under the FCA's Disclosure and Transparency Rules.

Issue of Options

The Company also announces that, pursuant to its Stock Option Plan, it has granted incentive stock options to certain directors and employees of the Company as part of its annual incentive stock option programme. The stock options were granted on 4 January 2016 over a total of 11,796,000 common shares, representing approximately 2.18% of the issued share capital of the Company at an exercise price of GBP 0.0562 per share, being equal to the closing price of the common shares on 4 January 2016 on AIM. 1,150,000 of the stock options are exercisable immediately and the remainder vest over the next two years upon completion of certain vesting conditions. The stock options issued are capable of being exercised up to 5 January 2021.

The allocation of stock options to directors was as follows:

 
 Director      Position     New Options       Total          Current      Current Shareholding 
                               Issued        Options       Shareholding      as a Percentage 
                                               Held         in Aureus          of Current 
                                            Following                         Issued Share 
                                               This                              Capital 
                                           Announcement 
 David         President 
  Reading       & CEO         1,200,000       4,150,000       1,090,805                  0.20% 
              -----------  ------------  --------------  --------------  --------------------- 
 David 
  Netherway    Chairman         900,000       2,800,000         431,454                  0.08% 
              -----------  ------------  --------------  --------------  --------------------- 
 Adrian 
  Reynolds     Director         400,000       1,100,000          76,247                  0.01% 
              -----------  ------------  --------------  --------------  --------------------- 
 Jean-Guy 
  Martin       Director         400,000       1,100,000          99,382                  0.02% 
              -----------  ------------  --------------  --------------  --------------------- 
 Karin 
  Ireton       Director         300,000         725,000         132,000                  0.02% 
              -----------  ------------  --------------  --------------  --------------------- 
 Loudon 
  Owen         Director         300,000         725,000          99,593                  0.02% 
              -----------  ------------  --------------  --------------  --------------------- 
 

These options were issued for nil consideration.

Correction - Please note that the total number of shares owned by Mrs. Karin Ireton was incorrectly stated in the press releases dated 30 November, and 9 December 2015. Mrs. Karin Ireton had an existing beneficial shareholding of 52,000 common shares and purchased another 80,000 common shares on 9 December 2015. The correct number as to the total shares owned by Mrs. Karin Ireton is 132,000 common shares as shown in the table above.

Contact Information

 
Aureus Mining Inc.                     Buchanan 
 David Reading / Paul Thomson           Bobby Morse / Anna Michniewicz 
 Tel: [phone]               Tel: [phone] 
Numis Securities Limited               GMP Securities Europe LLP 
 (Nominated Adviser and Joint Broker)   (Joint Broker) 
 John Prior / James Black / Paul        Richard Greenfield / Mitch Limb 
 Gillam                                 Tel: [phone] 
 Tel: [phone] 
 

About Aureus Mining Inc.

The Company's assets include the New Liberty Gold Mine in Liberia (the "New Liberty Gold Mine," "New Liberty" or the "mine") which has an estimated proven and probable mineral reserve of 8.5 Mt with 924,000 ounces of gold grading 3.4 g/t and an estimated measured and indicated mineral resource of 9,796 Kt with 1,143,000 ounces of gold grading 3.63 g/t and an estimated inferred mineral resource of 5,730 Kt with 593,000 ounces of gold grading 3.2 g/t. A Definitive Feasibility Study ("DFS") has been completed, the first gold pour has taken place and work continues on commissioning the plant for full scale commercial production. The mine is expected to have an 8 year life and annual production of 119,000 ounces for the first 6 years of production. The foregoing mineral reserve and mineral resource estimates and additional information in connection therewith are set out in the Company's technical report dated March 25, 2015 and entitled "New Liberty Gold Project, Bea Mountain Mining Licence Southern Block, Liberia, West Africa, Definitive Project Plan."

The New Liberty Gold Mine is located within the Southern Block of the 100% owned Bea Mountain mining licence. This licence covers 478 km(2) and has a 25 year, renewable, mineral development agreement. The Bea Mountain mining license also hosts additional gold projects of Ndablama, Gondoja, Weaju and Leopard Rock which are the focus of exploration programs during 2016. Ndablama has an indicated mineral resource of 386,000 ounces of gold grading 1.6 g/t and inferred mineral resource of 515,000 ounces of gold grading 1.7 g/t and Weaju has an inferred mineral resource of 178,000 ounces of gold grading 2.1 g/t. The Yambesei (759 km(2) ), Archaen West (112.6 km(2) ), Mabong (36.6 km(2) ) and Mafa West (15.6 km(2) ) licences will also be subject to preliminary reconnaissance geological work. The foregoing mineral resource estimates and additional information in connection therewith are set out in the Company's technical report dated December 1, 2014 and entitled "Ndablama and Weaju Gold Projects, Bea Mountain Mining Licence, Northern Block, Technical Report on Mineral Resources" ("Ndablama and Weaju Technical Report 2014").

The Company also has a gold exploration permit in Cameroon.

Qualified Persons

The Company's Qualified Person is David Reading, who holds a MSc in Economic Geology from University of Waterloo, Canada and is a Fellow of the Institute of Materials, Minerals and Mining. David Reading is the President and CEO of Aureus Mining Inc. and has reviewed and approves this press release.

Forward Looking Statements

Certain information in this news release relating to Aureus is forward-looking and related to anticipated events and strategies. When used in this context, words such as "will", "anticipate", "believe", "plan", "intend", "target" and "expect" or similar words suggest future outcomes. Forward-looking information contained in this press release includes, but may not be limited to, statements or information relating to: the New Liberty Gold Project (including the quantity and quality of mineral resource and mineral reserve estimates), the potential to upgrade inferred mineral resources, opportunities to optimize the New Liberty Gold Project, the ability of the Company to develop the New Liberty Gold Project into a mine and the proposed new plans relating thereto regarding operations and mine design, future gold production, and future cash flows, the expected mine life of the New Liberty Gold Project, progress in the fight against Ebola and the anticipated exploration and development activities of Aureus. By their nature, such statements are subject to significant risks and uncertainties that may cause actual results or events to differ materially from current expectations, including: risks normally incidental to exploration and development of mineral properties; the inability of the Company to obtain required financing when needed and/or on acceptable terms or at all; risks that the cost of implementing the new mine plan at the New Liberty Gold Project and the operating cash costs of the New liberty Gold Project exceed those estimated in the new mine plan; uncertainties in the interpretation of results from drilling and test work; the possibility that future exploration, development or mining results will not be consistent with expectations; regulatory and government decisions; the possibility that future drawdowns under the loan facilities may not be

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