UPDATE 1-Aurico Gold agrees $750 mln Mexico asset sale to Minera Frisco

Tue Oct 9, 2012 7:55pm EDT

MEXICO CITY Oct 9 (Reuters) - Canadian miner AuRico Gold Inc said on Tuesday it had agreed to sell the Ocampo mine in Mexico, as well as adjacent exploration projects and a 50 percent stake in the Orion project, to tycoon Carlos Slim's Minera Frisco for $750 million.

AuRico said it expected the transaction to close in December, and that it would use the net proceeds to "eliminate certain debt obligations, invest in internal growth opportunities, (and) provide sufficient working capital and liquidity for the company going forward."

Minera Frisco said in a separate statement it would pay cash for the assets, adding the purchase would complement some of its projects under development, boost installed capacity and give it a "solid base of proven and probable reserves".

Minera Frisco was spun off from Slim's Grupo Carso conglomerate early last year, and focuses on precious metals.