DGAP-News: AU Minera Corporation Acquires Caracol Mine
(firmenpresse) - DGAP-News: AU Minera Corp. / Key word(s): Mergers&Acquisitions
AU Minera Corporation Acquires Caracol Mine
26.01.2011 / 08:00
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January 26, 2011 - AU Minera Corporation (FSE: ZAU) ('AU Minera' or the
'Company') is pleased to report the acquisition of 100% of the issued
voting securities of Minera Caracol S.A.C., a private Peruvian company.
Minera Caracol is the owner and operator of a producing gold, silver and
copper mine in northern Peru. The Company also owns a mill which is
equipped to process up to 100 tons of ore on a daily basis. The management
of AU Minera intend to increase production at the Caracol Mine to 50 tons
per diem over the next two months. The positive cash flow generated by the
vertically integrated operation of the mine and mill will be used by
management to acquire two additional mining projects in Peru as well as
additional equipment to upgrade the Las Dunas plant.
Peru is now the number one producer of gold in Central and South America
and, within that positive setting, the mineral rights comprising the
Caracol Mine cover approximately 400 hectares in the proven and prolific
mining area on the western flank of the Cordillera Occidental of the Andes
in northern Peru. With significant reserves of both gold and silver running
at 21 grams/ton and 45 grams/ton respectively, management plan to expand
reserves further through a drilling program scheduled to commence in the
first quarter of 2011. After three years of production at the Caracol Mine,
revenues have increased annually and passed through the US$1,100,000
plateau in fiscal 2010. With the implementation of new equipment at the
mine site, management expects revenues to surpass US$4,000,000in the 2011
fiscal period. President Alejandro Diaz stated that 'the AU Minera plan is
simple - supplement shareholder values by building reserves while relying
on positive cash to develop Caracol and finance acquisitions. We want to
avoid the issuances from treasury that erode earnings per share to the
greatest extent possible.'
About AU Minera Corporation
AU Minera Corporation was formed to identify developed or producing mining
properties in politically stable South American countries and to take
advantage of management experience and expertise in the South American
mining industry to identify mining prospects that lend themselves to rapid
development, production and, ultimately, the enhancement of shareholder
values. The management of AU Minera is primarily focused on building
reserves and utilizing positive cash flow to internally finance the
development of prospects on a basis that avoids the undue issuances from
treasury that impact negatively on earnings.
On behalf of the Board of Directors
AU Minera Corporation
Alejandro Diaz, President
E-mail: alex(at)auminera.com
Website: www.auminera.com
FORWARD-LOOKING STATEMENTS
Statements in this document which are not purely historical are
'forward-looking statements', including any statements regarding the
intent, belief or current expectations of AU Minera Corporation and members
of its management as well as the assumptions on which such statements are
based. Prospective investors are cautioned that such forward-looking
statements are not guarantees of future performance and involve risks and
uncertainties, and that actual results may differ materially from those
contemplated by such forward-looking statements. Important factors
currently known to management that could cause actual results to differ
materially from those in forward-looking statements include, among others,
material changes commodity prices which could impact negatively on
operating margins and profitability, material changes in the global capital
markets that may impact negatively on the Company's ability to secure the
working capital required to complete the ongoing development of its mineral
rights on a timely basis, the competitive nature of the mining industry as
it relates to the Company's ability to attract the personnel required to
efficiently execute the Company's business plan. Forward looking statements
are made based on management's beliefs, estimates and opinions on the date
the statements are made and the Company undertakes no obligation to update
forward-looking statements if these beliefs, estimates and opinions or
other circumstances should change, except as updates may be required by
applicable law. Such forward-looking statements reflect our current views
with respect to future events and are subject to certain risks,
uncertainties and assumptions, including, the risks and uncertainties
outlined in our most recent financial statements. Although the Company
believes that the plans, expectations and intentions contained in this news
release are reasonable, there can be no assurance those plans, expectations
or intentions will prove to be accurate. Investors should consider all of
the information set forth herein. This news release shall not constitute an
offer to sell or the solicitation of an offer to buy securities nor shall
there be any sale of securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to qualification under the
applicable securities laws of any such jurisdiction.
End of Corporate News
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26.01.2011 Dissemination of a Corporate News, transmitted by DGAP - a
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110017 26.01.2011
Datum: 26.01.2011 - 08:00 Uhr
Sprache: Deutsch
News-ID 33057
Anzahl Zeichen: 0
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Kategorie:
Business News
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