This morning Mano River Resources announced the completion of its merger with African Aura Resources. As a result Mano River has been re-submitted to the AIM market under its new name African Aura Mining (AIM: AAAM, TSX-V: AUR).
The combined company, African Aura Mining is focused on the development of iron ore and gold deposits in highly prospective, under explored countries of sub-Saharan Africa.
Under the terms of the agreement shareholders of the previous African Aura Resources received 1.57 shares of Mano River for each AAR common share. A subsequent 1:8 share consolidation took place as the new company’s share capital was issued. The newly formed African Aura Mining has an issued share capital of 60,487,568 shares on a fully diluted basis.
The company’s two principle assets are based in Liberia and Cameroon. In Liberia the New Liberty Gold property has a NI 43-101 compliant 13.533 million tonnes of measure and indicated resource, with an average grade of 3.18 grams per tonne. The 100% owned 1.4 million ounce deposit is located in North West Liberia. The company also has a pipeline of multiple hard rock gold deposits within truckable distances of New Liberty.
African Aura’s Liberian iron project, Putu, is located in South East Liberia 100km from the Atlantic coast. Putu is being developed through a joint venture with Russian group Severstal Resources (LSE & RTS: CHMF). In July this year, SRK Consulting was engaged to produce a NI 43-101 compliant Independent Mineral Resource Estimate for the Putu Iron Ore Project. At present the project has NI 43-101 Inferred resources estimate of 1.07 Billion tonnes (bt) at 37.6% Iron.
The initial focus of African Aura Mining will be on creating value at its Liberian Projects. The company plans to advance the New Liberty Gold project toward production with 100,000 ounces annual production targeted. Additionally African Aura will conduct resource drilling at the surrounding satellite deposits including the Weaju, Gondoja and Sillver Hills properties.
At Putu, African Aura Mining will complete a 27,000m drilling programme to enlarge the resource of the 1.07bt Putu iron ore project
In Cameroon, the Nkout iron Project is the company’s primary exploration project where grab samples have averaged 54% Iron along a 5km section. The Nkout Iron prospect is located in the Company's Djoum licence in southern Cameroon.
In South East Cameroon, the Batouri licence covers a transition between tropical rainforest to the south and open tree savannah to the north. Earlier this year, African Aura initiated drilling at the Kambele Prospect. Drilling to date indicates the presence of two or more, sub-horizontal, sub-parallel gold mineralised zones up to 10m thick.
African Aura is also undertaking Uranium and Rare Earth exploration prospects through its 70% owned Ridgeway Energy Ltd. Ridgeway own licences in Cameroon covering 3,473 km².
In the near term African Aura intend to continue the 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, the company stated.
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 (ASX: SHX). David was involved in the construction and development of the Iduapriem, Siguiri and Kiniero gold mines in West Africa. David is also Chairman of GMA Resources (AIM: GMA) and a director of KazakhGold (LSE: KZG) and Altus Resource Capital Ltd (LSE: ARCL).
Steven Poulton has been appointed as an independent director. Steven Poulton has considerable experience in African mining operations, he has held several directorships and has co-founded an number of African focused mining companies, including Altus Resource Capital (LSE: ARCL) and Ariana Resources (AIM: AAU).