Aureus and MNG Gold agree $30million financing to restart New Liberty Mine
Aurues Mining has announced that an agreement has been reached with MNG Gold Jersey Ltd for $30million in equity financing to help fund the restarting of operations at the New Liberty Gold Mine in Liberia.
The agreement will see MNG Gold become a 55% shareholder in Aureus, with the equity funding to be used to enable the restart of operations at the high grade gold deposit.
MNG Gold has exploration, development and production assets in Turkey, Burkina Faso and Liberia.
David Netherway, Chairman of Aureus Mining, has welcomed the agreement following a difficult few years for the company.
“Within five years, the Aureus team has overseen the exploration, development and commissioning of New Liberty, Liberia’s first ever commercial gold mine,”
“During this time, the Company has faced the significant challenges of the tragic Ebola virus and the financial constraints of the global mining downturn. More recently, there have been operational challenges that, while not unusual at the early stages of commissioning and operations, reduced anticipated cash flows. The recent plant suspension has added to financial pressures faced by the Company,” he added.
“This transaction will recapitalise the Company and places it in a much stronger position to move forward.”
Serhan Umurhan, General Manager of MNG Gold, has praised the investment in Aurues, marking it as a representation of MNG Gold’s strong West African portfolio.
“New Liberty is an attractive opportunity to add high quality ounces to our West African mining portfolio,” he said.
“We see significant growth potential for New Liberty, supported by our strong financial position, global mining expertise and synergies with our other Liberian operation. MNG Gold is committed to responsible and sustainable mining and to creating long lasting benefits to the community.” He added.
Operations are expected to resume from mid-June 2016.
Read the May 2016 issue of Mining Global magazine