Cobbetts strikes gold with Aureus
The Birmingham office of law firm Cobbetts has advised AIM-listed African Aura Mining on the split of its gold assets into a new company. Cobbetts public markets team advised on the creation of Aureus Mining and its admission to trading on AIM.
Aureus has also been listed for trading on the Toronto Stock Exchange (TSX).
Following the creation of the new company, African Aura Mining has now been renamed 'Afferro Mining'. It’s UK headquarters are based in London.
Aureus has been admitted to trading on AIM with a market capitalisation of £100m The company was established for the separation of Afferro’s iron ore and gold assets in sub-Saharan Africa.
The newly formed company has acquired Afferro’s gold assets and the company’s 14 per cent stake in AIM-quoted Stellar Diamonds.
The deal marks Cobbetts’ fifth deal in the mining sector in 2011.
Cobbetts’ partner Charles Bond, who led the advisers on the deal, said: “We are delighted to have advised both Aureus and Afferro on the transaction which we hope will maximise value for shareholders. The restructuring should enable the two vehicles to push forward with ambitious mining projects.
“The admission demonstrates the continuing appetite of investors for mining and resource stocks as commodity prices reach record highs. We expect to see more companies in the mining sector looking to capitalise on this market sentiment.”
