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UPDATE 1-Crocodile Gold buys two Australia mines from AuRico
March 27, 2012 / 10:00 PM / 5 years ago

UPDATE 1-Crocodile Gold buys two Australia mines from AuRico

* Acquires Stawell, Fosterville mines for C$105 mln

* Crocodile raises 2012 output view to 230,000-250,000 gold ounces

March 27 (Reuters) - Crocodile Gold said it will buy two mines in Australia from AuRico Gold Inc for up to C$105 million ($105.78 million) as the Canadian gold miner moves to ramp up its production in the region.

Crocodile Gold hiked its production outlook for 2012 to 230,000-250,000 ounces of gold, from its earlier expectation of 75,000-80,000 ounces, as it expects to benefit from the two acquired mines, Stawell and Fosterville, in Victoria.

“The two mines will add meaningfully to Crocodile Gold’s near-term production as our Cosmo mine continues to ramp up to steady state,” Crocodile Gold Chief Executive Chantal Lavoie said in a statement.

Crocodile will pay C$70 million in cash and C$10 million in stock to AuRico. It expects to fund the cash part of the deal through an A$80 million credit facility provided by Credit Suisse.

The remaining C$25 million will be paid in three installments, which will be made annually from the closing date of the deal.

Shares of Crocodile Gold closed at 49 Canadian cents on the Toronto Stock Exchange, while those of AuRico closed at C$8.90 on Tuesday.

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