The previously announced mining services contract entered into with the underground mining contractor has an initial term of four years and includes the provision of a mining fleet and skilled labour force.
As previously announced, in connection with mobilisation, AUMS will make an initial investment in the company of US$5 million by means of a non-brokered private placement. Upon closing of the private placement, AUMSG will hold approximately 3% of the issued and outstanding common shares of the company on an undiluted basis.
No finders' fees or commissions will be payable in connection with the private placement. The net proceeds of the offering will be used to partially fund the development and exploration of Yaramoko, and for general corporate purposes.
As previously announced, Roxgold will have the option to settle up to US$10 million in payments under the mining contract in the form of Roxgold common shares.
“We are very pleased to welcome AUMSG as a shareholder of Roxgold”, comments Paul Criddle, Roxgold’s COO. “The alignment of interests between Roxgold and a key contractor bodes well for the smooth operation of the Yaramoko gold project, development of which has been progressing very well.”
AUMS is a joint venture between Ausdrill, an international mining services business, and Barminco, a specialist underground mining contractor.
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