AuRico Gold selling Ocampo mine, Orion stake
NEW YORK (AP) — Shares of AuRico Gold surged more than 17 percent on Wednesday, as the Canadian gold mining company announced that it is selling the Ocampo mine, adjacent exploration projects and half of the Orion development project for $750 million.
AuRico said Tuesday that the deal with Mexican mining company Minera Frisco, S.A.B. de C.V. includes the Venus and Los Jarros exploration projects, which are adjacent to the Ocampo mine in Chihuahua State, in the northern part of Mexico. The Orion project is in Nayarit State, Mexico in the western part of the country.
AuRico Gold Inc. expects to use the deal's net proceeds to pay off some debt, make investments and provide working capital and liquidity.
The transaction is expected to close in December, pending review by Mexican antitrust authorities.
AuRico shares rose $1.13, or 17.6 percent, to $7.55 in midday trading. Over the past year, the stock has traded between $5.25 and $11.20.