Stockholm, 2015-01-05 07:45 CET (GLOBE NEWSWIRE) -- Auriant Mining AB (publ.) and Aristus Holdings Ltd. today announced that the companies’ Boards of Directors have approved a deal under which Aristus has agreed to grant Auriant Mining AB (publ.) an option to purchase a 50% interest in five gold properties located in Russia’s Chukotka region, including Valunisty - a producing gold mine (hereinafter – the Project).
As part of the deal, the companies agreed that LLC Auriant Management (a Russian wholly-owned subsidiary of Auriant Mining AB (publ.)) will, upon receipt of relevant approvals from the Russian Federal Anti-Monopoly Service, enter into a legally binding agreement with Aristus Holdings Ltd. to manage and develop these assets over the next 3 years. LLC Auriant Management will receive a fixed management fee of US$ 1.2 mln per annum and up to US$ 2.4 mln annual bonus linked to the fulfilment of certain production and financial targets. Parties expect to sign legally binding documentation within 1Q 2015. Beginning in January 2015 LLC Auriant Management will provide the Project with a full range of consulting services.
Chukotka in Russia’s Far East is a prolific gold producing area with several world class gold mines, including Kinross Gold’s Kupol and Dvoinoye mines and Polymetal’s Mayskoye mine.
Chukotka gold properties
Valunisty: This is a producing gold mine with 2014 production of around 750 kg of gold and equivalents. The C1 + C2 reserves of gold are 17.5 tonnes at an average grade of 5.9 g/t; 178 tonnes of silver at an average grade of 59.6 g/t leading to overall C1 + C2 reserves of around 20 tonnes of gold equivalent. Mining is open pit, with a mill capacity of 250,000 tpa, and straightforward carbon in leach processing with gold recoveries of 95%. With limited previous exploration there is excellent potential for the further increase reserves at the deposit.
Kanchalano-Amgguyemskaya Area (KAP): This is an 831 km2 license area, incorporating several known deposits and prospects, including Valunisty. By the end of 2015 there will be an updated reserves calculation and it is envisaged that ore will be processed at the Valunisty plant.
Uteveem: This is a 1,094 km2 license area containing at least five identified silver-gold prospects. No detailed exploration has been undertaken to date.
Kayenmyvaam: This is a 1,214 km2 license area containing at least six prospects. One prospect, Arykvaam has had some limited core drilling of 5,000 m and 5,900 m of trenching which has indicated a sizeable gold and silver resource.
Mangazei: This is a 639 km2 license area. Early stage exploration work has shown two types of mineralization: copper-porphyry and epithermal gold-silver veins.
For more information, please contact:
Denis Alexandrov, CEO
Tel: + 7 495 660 2220
e-mail: denis.alexandrov@auriant.com
Company name: Auriant Mining AB
Short name: AUR
ISIN-code: SE0001337213
Website: www.auriant.com
Twitter: @auriantmining
Auriant Mining AB (AUR is a Swedish junior mining company focused on gold exploration and production in Russia, primarily in Zabaikalye and the Republics of Khakassia and Tuva The company has currently four assets, including two operating mines (Tardan and Solcocon) and two early stage exploration assets. The group’s mineral licenses are estimated to contain almost 1,300,000 troy ounces of gold reserves according to Russian standards (GKZ).
Since July 19, 2010, Auriant Mining´s shares are traded on First North Premier at the NASDAQ OMX Nordic Exchange under the short name AUR. For more information please visit www.auriant.com. Mangold Fondkommission is Certified Adviser to Auriant, for more information please call +46 8 503 015 50 or visit www.mangold.se .
Cautionary Statement: Statements and assumptions made in this report with respect to Auriant Mining AB’s (“AUR”) current plans, estimates, strategies and beliefs, and other statements that are not historical facts, are forward-looking statements about the future performance of AUR. Forward-looking statements include, but are not limited to, those using words such as "may", "might", "seeks", "expects", "anticipates", "estimates", "believes", "projects", "plans", strategy", "forecast" and similar expressions. These statements reflect management's expectations and assumptions in light of currently available information. They are subject to a number of risks and uncertainties, including, but not limited to, (i) changes in the economic, regulatory and political environments in the countries where AUR operates; (ii) changes relating to the geological information available in respect of the various projects undertaken; (iii) AUR’s continued ability to secure enough financing to carry on its operations as a going concern; (iv) the success of its potential joint ventures and alliances, if any; (v) exchange rates, particularly between the Russian rouble and the U.S. dollar. In the light of the many risks and uncertainties surrounding any gold production and exploration company at an early stage of its development, the actual results could differ materially from those presented and forecast in this report. AUR assumes no unconditional obligation to immediately update any such statements and/or forecasts
This press release shall not, directly or indirectly, be released, published or distributed in or to the United States, Australia Japan, Canada, New Zealand, Hong Kong, South Africa or other country where such action as a whole or in part is subject to legal restrictions. Nothing in this press release should be considered as an offer to invest or otherwise trade in shares of Auriant Mining AB (publ). The proposed issue will not be directed at residents or those living in the United States, Australia, Japan, Canada, New Zealand, Hong Kong, South Africa or other country where such action would require further prospectus, other offering documentation, registration or other measures beyond those required by Swedish law. No securities will be registered under the United States Securities Act of 1933, a similar law in any state in the United States, or under any provincial law in Canada, nor under the applicable law of another country.
