Washington, D.C., Feb. 18, 2015
— IFC, a member of the World Bank Group, announced today that it has
invested approximately £5.3 million in Aureus Mining to support an optimized
plan for the New Liberty mine project in Liberia in the wake of the Ebola
crisis. Prior to the transaction, IFC owned 12.8% of the issued and outstanding
shares of the company on a fully diluted basis. The equity financing will
help Aureus Mining cope with additional costs resulting from having continued
its operations through the outbreak, and support the company’s ongoing
work in Liberia, a country actively seeking to use its natural resources
for long term economic growth.
Under the terms of the investment, made
by way of private placement, IFC subscribed for 29,239,766 common shares
at a price of £0.18 per common share for aggregate consideration of approximately
£5.3 million. The investment increases IFC’s holdings in Aureus Mining
to 17.42% of the issued and outstanding common shares of the company calculated
on a fully diluted basis. The IFC investment was made in connection with
a brokered private placement for aggregate proceeds of £4.4 million. IFC’s
investment follows an US$11.1 million equity investment previously made
in July 2014. IFC is also providing environmental and social advice to
Aureus as it works to complete the project and continues additional exploration
work in Liberia.
The New Liberty gold project is Liberia’s
first commercial gold mine with significant development potential for the
country. It entails the construction of a greenfield open pit gold mine
located in the Grand Cape Mount County of northwest Liberia. In addition
to paying revenues to the government, the project is expected to provide
300 jobs in a remote region of the country.
Aureus Mining continued to work to develop
New Liberty throughout the Ebola crisis in Liberia. It estimates the outbreak
resulted in about US$18 million in additional direct and indirect costs
for the project.
"We are delighted to have this
additional support from IFC which will allow us to continue the development
of the New Liberty Project despite the challenges posed by the Ebola outbreak.
It is an endorsement of the tireless work of our construction and operations
teams and we look forward to continuing to work to deliver benefits to
Liberia and our shareholders,” said David Reading, President and Chief
Executive Officer of Aureus Mining.
“IFC anchored this additional investment
in Aureus because we feel the company’s updated mine plan makes sound
financial sense. Aureus has demonstrated its ability to handle adversity
by continuing to build its project throughout the Ebola crisis, and continuing
with its innovative community engagement programs. We look forward to successful
mine completion later this year,” said Tom Butler, IFC Global Head of
The World Bank Group is mobilizing nearly
$1 billion in financing for the countries hardest hit by the Ebola crisis.
This includes $518 million from IDA for the emergency response, and at
least $450 million from IFC to enable trade, investment and employment
in Guinea, Liberia and Sierra Leone.
Depending on market and other conditions,
IFC may from time to time increase or decrease its holdings of common shares
or other securities of Aureus Mining.
This news release is issued pursuant
to National Instrument 62-103 – The Early Warning System and Related
Take-Over Bid and Insider Reporting Issues of the Canadian Securities
Administrators, which also requires an early warning report to be filed
with the applicable securities regulators containing additional information
with respect to the foregoing matters.
A copy of the early warning report in
respect of this transaction will be available at www.sedar.com.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. Working with private enterprises in about 100 countries,
we use our capital, expertise, and influence to help eliminate extreme
poverty and boost shared prosperity. In FY14, we provided more than $22
billion in financing to improve lives in developing countries and tackle
the most urgent challenges of development. For more information, visit