AU Minera Corp.
AU Minera Corporation Acquires Caracol Mine
AU Minera Corp. / Key word(s): Mergers & Acquisitions AU Minera Corporation Acquires Caracol Mine January 26, 2011 – AU Minera Corporation (FSE: ZAU) ('AU Minera' or the 'Company') is pleased to report the acquisition of 100% of the issued voting securities of Minera Caracol S.A.C., a private Peruvian company. Minera Caracol is the owner and operator of a producing gold, silver and copper mine in northern Peru. The Company also owns a mill which is equipped to process up to 100 tons of ore on a daily basis. The management of AU Minera intend to increase production at the Caracol Mine to 50 tons per diem over the next two months. The positive cash flow generated by the vertically integrated operation of the mine and mill will be used by management to acquire two additional mining projects in Peru as well as additional equipment to upgrade the Las Dunas plant. Peru is now the number one producer of gold in Central and South America and, within that positive setting, the mineral rights comprising the Caracol Mine cover approximately 400 hectares in the proven and prolific mining area on the western flank of the Cordillera Occidental of the Andes in northern Peru. With significant reserves of both gold and silver running at 21 grams/ton and 45 grams/ton respectively, management plan to expand reserves further through a drilling program scheduled to commence in the first quarter of 2011. After three years of production at the Caracol Mine, revenues have increased annually and passed through the US$1,100,000 plateau in fiscal 2010. With the implementation of new equipment at the mine site, management expects revenues to surpass US$4,000,000in the 2011 fiscal period. President Alejandro Diaz stated that 'the AU Minera plan is simple – supplement shareholder values by building reserves while relying on positive cash to develop Caracol and finance acquisitions. We want to avoid the issuances from treasury that erode earnings per share to the greatest extent possible.'
About AU Minera Corporation AU Minera Corporation was formed to identify developed or producing mining properties in politically stable South American countries and to take advantage of management experience and expertise in the South American mining industry to identify mining prospects that lend themselves to rapid development, production and, ultimately, the enhancement of shareholder values. The management of AU Minera is primarily focused on building reserves and utilizing positive cash flow to internally finance the development of prospects on a basis that avoids the undue issuances from treasury that impact negatively on earnings. On behalf of the Board of Directors
AU Minera Corporation
E-mail: alex@auminera.com Website: www.auminera.com
FORWARD-LOOKING STATEMENTS Statements in this document which are not purely historical are 'forward-looking statements', including any statements regarding the intent, belief or current expectations of AU Minera Corporation and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include, among others, material changes commodity prices which could impact negatively on operating margins and profitability, material changes in the global capital markets that may impact negatively on the Company's ability to secure the working capital required to complete the ongoing development of its mineral rights on a timely basis, the competitive nature of the mining industry as it relates to the Company's ability to attract the personnel required to efficiently execute the Company's business plan. Forward looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as updates may be required by applicable law. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, the risks and uncertainties outlined in our most recent financial statements. Although the Company believes that the plans, expectations and intentions contained in this news release are reasonable, there can be no assurance those plans, expectations or intentions will prove to be accurate. Investors should consider all of the information set forth herein. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification under the applicable securities laws of any such jurisdiction. End of Corporate News 26.01.2011 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
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