The funds raised are to be used by Aureus Mining to reduce outstanding creditor balances, bolster working capital and facilitate the ramp up of the processing plant which is scheduled to be restarted from mid-June 2016.
Tranche 1 entailed the issue 59.53 million new common shares in Aureus Mining at a price of 3.21p per share and a promissory note in the aggregate principal amount of $12.3 million to MNG Gold for aggregate gross proceeds of $15 million at closing.
Application has been made for the 59.53 million new shares to be admitted to trading on AIM with admission to take place on 22 June.
Tranche 2 of the offering entails the issue of 331.11 million shares at a price of 3.21p per share to MNG Gold for aggregate gross proceeds of a further $15 million is to be completed upon clearance by the Toronto Stock Exchange of the required personal information forms and receipt of the required AIM approvals. On completion of Tranche 2 the promissory note will automatically be convertible into shares.
Following the deal, MNG Gold will become a 55% shareholder in Aureus and appoint three representatives to the board. CEO David Reading will resign and MNG general manager Serhan Umurhan will take his place.
MNG Gold has exploration, development and production assets in Turkey, Burkina Faso and Liberia. It is owned by Mehmet Nazif Gűnal who also has interests in construction and contracting, tourism, air carriage, cargo carriage, finance and energy.