Aureus Mining Inc. - Closing of Us$80 Million Offering

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TSX : AUE
AIM : AUE

TORONTO, Nov. 16, 2012 /CNW/ - Aureus Mining Inc. ("Aureus" or the "Company") is pleased to announce that it has closed its previously announced offering of Units (as defined below) pursuant to a short form prospectus offering in Canada (the "Prospectus Offering") and a concurrent private placement offering to investors in jurisdictions outside of Canada (the "Private Placement", and together with the Prospectus Offering, the "Offering") to raise approximately US$80 million. Each "Unit" comprises one common share of the Company (each, a "Common Share") and one-quarter of one common share purchase warrant of the Company (each whole common share purchase warrant, a "Warrant"). Each Warrant entitles the holder thereof to purchase one Common Share at a price of £0.625 (or the prevailing C$ equivalent thereof) up to and including 16 May 2014.  The Offering was completed by a syndicate of underwriters led by GMP Securities L.P., RBC Capital Markets and Clarus Securities Inc.

Pursuant to the Prospectus Offering, the Company issued 15,000,000 Units, comprising 15,000,000 Common Shares and 3,750,000 Warrants, at a price of C$0.80 per Unit. Pursuant to the Private Placement, the Company issued 84,700,000 Units comprising 84,700,000 Common Shares and 21,175,000 Warrants at a price of £0.50 per Unit.

In aggregate therefore the Company issued 99,700,000 Units, comprising 99,700,000 Common Shares and 24,925,000 Warrants, for gross proceeds of approximately US$80 million.

Following the completion of the Offering the Company's issued share capital consists of 221,235,043 Common Shares.

The net proceeds of the Offering will be used to allow the Company to proceed with its proposed development and construction activities at the New Liberty Gold Project and for general corporate purposes.

The Company has granted the underwriters an option to purchase for re-sale additional Common Shares and Warrants (in any combination thereof) to raise additional gross proceeds of up to 15% of the gross proceeds raised from the sale of the Units pursuant to the Prospectus Offering, to cover over-allotments and for market stabilization purposes, exercisable at the Unit offering price in whole or in part, at any time and from time to time, for a period of up to 30 days after the closing.

David Reading, Chief Executive Officer of Aureus, commented:

"I am delighted with the support the offering received from existing and new shareholders, which demonstrates the confidence investors have in the robustness of the New Liberty project, in spite of challenging market conditions. With all key permits for the construction of New Liberty in place, the offering proceeds enable Aureus to commence development work immediately, in parallel with ongoing exploration programmes. The balance of the funding required for New Liberty is expected to come from debt financing and the successful completion of the offering strengthens the Company's position as we negotiate with a number of debt providers as part of an ongoing process."

This press release is for informational purpose only and does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States or any other jurisdiction in which such an offer or solicitation is unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state laws. No public offering of securities will be made in the United States.

Forward-looking Statements

Certain information in this news release relating to Aureus is forward-looking and related to anticipated events and strategies.  When used in this context, words such as "will", "anticipate", "believe", "plan", "intend", "target" and "expect" or similar words suggest future outcomes.  By their nature, such statements are subject to significant risks and uncertainties that may cause actual results or events to differ materially from current expectations, including: risks normally incidental to exploration and development of mineral properties; uncertainties in the interpretation of results from drilling and test work; the possibility that future exploration, development or mining results will not be consistent with expectations; regulatory and government decisions, including the inability of the Company to obtain, maintain, renew and/or extend required licenses, permits, authorizations and/or approvals from the appropriate regulatory authorities; economic conditions, availability and cost of financing, including debt financing in respect of New Liberty; and future unforeseen liabilities and other factors including, but not limited to, those listed under "Certain Risk Factors" in the Company's (final) short form prospectus dated November 13, 2012 and the documents incorporated by reference therein, a copy of which is available on SEDAR at www.sedar.com.  Readers are cautioned not to place undue reliance on forward-looking statements as actual results could differ materially from the plans, expectations, estimates or intentions expressed in the forward-looking statements.  Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable law, Aureus disclaims any obligation to update or modify such forward-looking information, either as a result of new information, future events or for any other reason.

SOURCE Aureus Mining Inc.