Canadian miner AuRico Gold Inc yesterday agreed to sell its Ocampo mine in Mexico, adjacent exploration projects and an equal stake in the Orion project, to Mexican billionaire Carlos Slim's Minera Frisco S A B de C V, for $750 million.
Minera Frisco will acquire the Ocampo mine and the adjacent exploration projects - ''Venus'' and ''Los Jarros'' - all located in Chihuahua State, Mexico and a 50-per cent interest in the Orion advanced development project located in Nayarit State, Mexico.
Toronto, Ontario-based AuRico Gold is a Canadian gold producer with a diversified portfolio of high quality mines and projects in North America that have significant production growth and exploration potential.
Following the sale of Ocampo, the company said that it would focus on its core operations including the producing Young-Davidson gold mine in northern Ontario and the El Chanate mine in Sonora State.
AuRico's project pipeline also includes several advanced development projects in Mexico and British Columbia.
Post closing, AuRico said that it expects to use the proceeds from the sale to pay debt, invest in internal growth opportunities, provide working capital and liquidity, and return capital to shareholders.