DOUALA, CAMEROON AFRICA, NOVEMBER 2010 (NEWS.CAMEROON-TODAY.COM) - African Aura Mining board had given the go-ahead for continuing to restructure its assets.
African Aura Inc Mining Explorations Operations in Cameroon, Africa
African Aura Mining Inc a Mining exploration and Development Company listed at the AIM has its core operations in domains like iron ore and gold mining. The projects are mostly based out of sub Saharan Africa and the company has numerous projects in Cameroon. The company told the members of the press on Tuesday that its Board of Directors has come into full agreement on the decision to go ahead with the process of totally restructuring its assets. The key objective of the asset restructuring process would be to improve its share prices as well as value in addition to also increasing its visibility across the global markets where it is listed in while focusing on value addition for its iron ore and gold projects by dividing them under two separate entities.
African Aura’s principal assets presently include
Iron Ore Division
- Gold Division
a).The Putu iron ore project in Liberia, for which it holds a stake of 35 percent with a National Instrument 43-101 .The mine presently has a forecasted mineral resource estimate of 1.08 Bt @ 37.6% iron from 2.6 kilometers of strike of a 12 kilometers to 13 kilometers target
b). The fully owned Nkout iron ore project in Cameroon has an estimated 8 kilometers long high reach magnetic target on which explorations conducted recently by drilling experts has estimated an iron ore mineralization with another 12 kilometers of magnetic targets still to be tested.
c). The Ngoa iron ore project in Cameroon which is adjacent to the Nkout project and in which the company has 70 percent stake
a). The New Liberty gold project in Liberia, with has been certified as NI 43-101 adherence has a precisely estimated mineral resource of 1.38 million ounces at a grade of 3.18 gram per tonne Au and on which a resource estimate to NI 43-101 requirements. A Preliminary Economic Assessment is currently being undertaken in this project the results of which are estimated to be very positive for the company.
b). A massive conglomeration of hard rock gold forecasts in Liberia within a 457 square kilometers for which the company has already secured the relevant licenses for mining and exploration, including the Ndablama and Weaju projects, which have already gone through a series of artisanal mining operations.
c). A plethora of hard rock gold diagnosed in Cameroon, including the Batouri project which has been undergoing a set of artisanal mining activities, and the possible item based license together totaling 1,074 square kilometers
African Aura’s Board believes that
a). The Company’s market capitalization presently does not indicate the precise estimate of the intrinsic value of its gold and iron ore assets in West Africa.
b). Investors choose to like ‘pure play’ companies who basically are into a single business that centers around a single commodity when it comes to determining values and comparing markets.
c). Offering investors shares in a new business that currently holds the gold assets, with equal prices to their stakes in African Aura will expose them to the future value to be developed from each class of assets
d). After finishing the Arrangement each division of African Aura and Aureus will be better stationed to fund their corresponding businesses and develop through exploration and acquisition.
Mr Luis da Silva President & CEO of African Aura said
“African Aura is in the enviable position of having advanced potentially ‘company making’ assets in two different commodities. The Board recognizes that, when compared to its peer group, African Aura’s current capitalization can conceivably be defended by either its iron ore assets alone or its gold assets alone.
The Arrangement, if completed as envisaged, is a mechanism designed to allow shareholders to benefit from the value of owning a share in each of two dedicated pure play entities. Shareholders will be entitled to receive one new share in African Aura and one share in Aureus for each share they hold in African Aura. We look forward to keeping shareholders updated on the progress of the Arrangement.”
About African Aura Inc:
African Aura Mining Inc. was born in October 2009 when Mano River Resources Inc. merged with African Aura Resources Limited (AAR). The Company is incorporated in British Columbia, Canada and is listed on the TSX-V (Ticker:AUR) and on London’s AIM (Ticker:AAAM). African Aura is focused on the development of world-class gold and iron-ore deposits in sub-Saharan Africa and has an impressive African exploration and development portfolio.
African Aura Inc Mining Explorations Operations in Cameroon, Africa
African Aura’s assets include the 100% owned New Liberty Gold deposit and the 38.5% owned Putu Iron Project in Liberia. A 10,000m confirmation drilling programme at New Liberty will be completed in second quarter of 2010, with the aim being to increase the gold resource from its current 1.4 million ounces measured and indicated level. The Company’s target is to deliver a revised definitive feasibility study during 2011.
The Putu iron ore project is being explored and operated by the Company’s joint venture partner, Severstal Resources. The project has an independent inferred mineral resource of 1.08 billion tonnes at an average grade of 37.6% iron (Fe) defined from 2.6km of the projects 13km strike, or just 22% of the ridge. A pre-feasibility study is expected to be completed during 2012.
The Company acquired both gold and iron ore assets in the Cameroon following the takeover of AAR and plans to evaluate and prioritise these during 2010.
