14 October 2009
TSX-V: AUR
AIM: AAAM
COMPLETION OF MERGER, SHARE CONSOLIDATION, NAME CHANGE, DE-LISTING OF
AFRICAN AURA RESOURCES LTD AND TEMPORARY SUSPENSION OF TRADING ON AIM
Mano River Resources Inc. ("Mano" or the "Company"), the TSX Venture
Exchange ("TSX-V") and AIM listed exploration to production company
focused on gold and iron ore in West Africa, is pleased to announce
the completion of its merger with African Aura Resources Limited
("AAR", TSX-V:AAZ) (the "Transaction").
Highlights:
* AAR shareholders received 1.57 shares in Mano for each share held
in AAR
* Mano consolidated its enlarged issued share capital on a 1 new
share for 8 existing shares basis
* Mano changed its name to African Aura Mining Inc ("African Aura")
* African Aura to trade on AIM (AAAM) and on TSX-V (AUR)
* Having been acquired by Mano, AAR shares have been delisted from
TSX-V
* David Netherway (Non-Executive Chairman) and Steven Poulton
(Non-Executive Director) appointed to enlarged board of African
Aura
* Updated company website at www.african-aura.com
Merger details
The Transaction was structured as a merger under the corporate laws
of the British Virgin Islands ("BVI"), in accordance with the
combination agreement dated 30 June 2009 between AAR and Mano. AAR
has merged with MANAAR Limited, a wholly-owned BVI subsidiary of
Mano. AAR shareholders received 1.57 shares of Mano for each common
share they held in AAR, provided that no fractional shares of Mano
were issued.
After closing of the Transaction, Mano undertook a 1 for 8 share
consolidation (one new post-consolidation share for every 8
pre-consolidation shares) and changed its corporate name to "African
Aura Mining Inc.". Post merger and post share consolidation African
Aura has an issued share capital of 52,884,456 shares on an undiluted
and 60,487,568 shares on a fully diluted basis. The shares of African
Aura will trade on the TSX-V and AIM markets under the symbols AUR
and AAAM, respectively. In connection with the Transaction AAR shares
have been delisted from the TSX-V.
Temporary suspension to trading on AIM
Pursuant to the share consolidation, the Company was required to
obtain a new ISIN and re-admit the post-consolidated shares to CREST
in order that trades can be settled electronically. The Company is in
the process of admitting the post-consolidated shares to CREST and
hopes to complete this process today. As such, the Board has
requested a temporary suspension of the trading of its shares on the
AIM Market of the London Stock Exchange. The Company is seeking to
resolve this issue as soon as possible and anticipates re-admission
of the post-consolidated shares during the course of today. The
Company will update the market in due course.
Post merger strategy
African Aura Mining Inc ("African Aura") will focus on creating value
from its advanced portfolio of gold and iron assets:
Liberian assets:
* 1.4 million ounce New Liberty gold (NI 43-101, 13.533Mt measured
and indicated 3.18 g/t Au)
* A pipeline of multiple hard rock gold deposits within truckable
distances of New Liberty
* 1.08 Bt at 37.6% iron at Putu, under joint venture with
Severstal Resources
Cameroon assets:
* 12km long Nkout iron project, grab samples averaging 54% iron
along a 5km section
* Resource drilling at Batouri gold project and portfolio of
Archaean and Birimian gold prospects
* Exploration of Uranium and Rare Earth Element prospects
The initial focus of African Aura will be on creating value in
Liberia by advancing the 1.4Moz New Liberty gold project in towards
production (targeting 100,000 ounces per annum) and resource drilling
of its satellite deposits (including Weaju, Gondoja and Sillver
Hills) and the completion of a 27,000m drilling programme to enlarge
the resource of the 1.08bt Putu iron ore project. In parallel African
Aura will continue the cost effective exploration of its Nkout iron
ore project and portfolio of gold and uranium projects in Cameroon.
Where appropriate, cost and risk sharing joint ventures will be
undertaken and further merger and acquisition opportunities in
sub-Saharan Africa will continue to be assessed as part of the merged
company's broader long term strategy to become a leading resource
company in Africa with robust gold and iron ore divisions.
Board appointments
As part of the Transaction David Netherway has been appointed
Independent Chairman of the board of Aura and Steven Poulton has been
appointed as an independent director.
David Netherway is a mining engineer with over 30 years of experience
in the mining industry and is the CEO of Shield Mining Ltd., an
Australian listed gold exploration company. David was involved in the
construction and development of the Iduapriem, Siguiri and Kiniero
gold mines in West Africa and has mining experience in Africa,
Australia, China, Canada, India and the former Soviet Union. David
served as the CEO of Toronto listed Afcan Mining Corporation, a China
focused gold mining company, that was sold to Eldorado Gold in 2005.
David has also held senior management positions in a number of gold
mining companies, including Golden Shamrock Mines, Ashanti Goldfields
and Semafo Inc. He is currently the Chairman of GMA Resources plc and
a director of the KazakhGold Group and ALTUS Resource Capital Ltd.
Steven Poulton holds an honours degree in Geology (Southampton) and a
masters degree in Mining Geology (Camborne School of Mines). He is
the CEO and co-founder of private resource investment group ALTUS
Strategies Ltd and is a director of ALTUS Asset Management Ltd, a
subsidiary and the investment manager of Altus Resource Capital Ltd
(LSE: ARCL). Steven worked for Mano from 1998 to 2005. In 2002 he
co-founded AIM listed Ariana Resources (AIM: AAU) and was its Chief
Executive between 2004 and 2007. In 2004 he was the founder of AAR
which listed on the TSX-V in 2008 and through its merger with Mano in
2009 created African Aura (TSX-V: AUR & AIM: AAAM). He is a
non-executive director of diamond producer Stellar Diamonds Ltd, an
independent subsidiary of African Aura.
About African Aura Mining Inc.
African Aura is an established West African exploration and
development company with a primary listing on the TSX-V (AUR) and a
secondary listing on London's AIM (AAAM). African Aura is focused on
the development of world-class iron ore and gold deposits in highly
prospective, under explored countries of sub-Saharan Africa. The
Company has a highly motivated and experienced team with a record of
discovering mines and taking projects through development and into
production in Africa.
African Aura's assets include the New Liberty gold deposit and the
Putu iron ore project, both in Liberia and a 59% interest in diamond
producer Stellar Diamonds Ltd. A pioneer in West Africa, African Aura
has attracted excellent strategic partners always with the objective
of preserving or enhancing shareholder value. For further information
on African Aura you are invited to visit its website at
www.african-aura.com, or SEDAR's website at www.sedar.com, or contact
one of the following:
African Aura Mining Inc.
Luis da Silva, President & CEO
Tel: +44 (0) 20 7299 4212
Evolution Securities Limited
Simon Edwards / Chris Sim / Neil Elliot Tel: +44 (0) 20 7071 4300
Pelham Public Relations
Charles Vivian / James MacFarlane Tel: +44 (0) 20 7337 1500
Forward-looking Statements
This press release includes certain forward-looking statements. All
statements, other than statements of historical fact, included
herein, including without limitation, statements regarding the
Transaction and future plans and objectives of African Aura are
forward-looking statements that involve various known and unknown
risks and uncertainties as well as other factors. Such
forward-looking statements are subject to a number of risks and
uncertainties that may cause actual results or events to differ
materially from current expectations, including delays in obtaining
or failure to obtain required regulatory approvals. There can be no
assurance that such statements will prove to be accurate and actual
results and future events could differ materially from those
anticipated in such statements. Any forward-looking statements speak
only as of the date hereof and, except as may be required by
applicable law, African Aura disclaim any obligation to update or
modify such forward-looking statements, either as a result of new
information, future events or for any other reason.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accept responsibility for the adequacy or accuracy of this release.
Ends
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