Aureus Mining’s transition to an owner-operator mining model took place on Wednesday with the completion of Bea Mountain Mining Corporation’s acquisition of mining equipment and inventory from Atmaca Services (Liberia) and the termination of the mining services contract with MonuRent.
The shareholder approval of the issuing of the new shares represents the fulfilment of the set condition for the $72 million equity fundraising, which will finance the transition of the company to an owner-operator mining model.
The company believes that the transition to an owner operator model is an attractive financial proposition as the capital requirements associated with completing this transaction are expected to be far outweighed by the significant reductions in future operating costs. In addition, it is an important strategic initiative that gives the company control over the mining fleet.
Further, Aureus Mining’s name change to Avesoro Resources also took effect on Wednesday 7 December 2016. Following the name change, the share code, or ticker symbol, of Avesoro Resources will be ASO for both the AIM and the TSX.
Avesoro Resources’ assets include the New Liberty gold mine in Liberia, which has an estimated proven and probable mineral reserve of 8.5 Mt with 924 000 oz of gold grading 3.4 g/t.
A definitive feasibility study has been completed, the first gold pour has taken place and commercial production has been declared.