AAAM African Aura

 

TIDMAAAM 
 
RNS Number : 9439T 
African Aura Mining Inc. 
06 October 2010 
 

6 October 2010 
 
TSX-V:  AUR 
AIM:     AAAM 
 
                      CONVERSION OF CONVERTIBLE DEBENTURES 
 
African Aura Mining Inc. ("African Aura" or the "Company"), the TSX-V (AUR) and 
AIM (AAAM) listed exploration and development company focused on gold and iron 
ore in sub-Saharan Africa, announces that, pursuant to the terms of its 
Convertible Debentures dated 27 September 2007, which matured on 28 September 
2010, the holders of the GBP2.3 million Convertible Debentures have elected to 
convert these Convertible Debentures into Common Shares in the capital of the 
Company at a price of GBP1.12 per Common Share. 
 
Following this conversion, African Aura will be debt free, leaving the company's 
balance sheet in a flexible position to enable future financing of its assets, 
in particular the iron ore portfolio which is developing better than expected a 
year ago and now targeting significant iron ore resources at both Putu and 
Nkout. The strong cash position will be further enhanced with US$4.2m due into 
treasury from Severstal as per the 2008 agreement. 
 
Application has been made to the London Stock Exchange for 2,053,569 Common 
Shares to be admitted to trading on AIM (the 'Admission') and to listing on the 
TSX Venture Exchange.  It is expected that such Admission will become effective 
and that dealings will commence no later than 12 October 2010. 
 
The shares will, when issued, rank pari passu in all respects with the existing 
Common Shares, including the right to receive dividends and other distributions 
declared following issue. 
 
Following Admission, the total issued share capital of the Company will be 
72,336,795 Common Shares, all of which have voting rights. 
 
Luis da Silva, President and CEO of African Aura commented: 
"We financed our 2007 activities with this three year convertible when a 
private placement would have come at a discount.  Together with the Severstal 
joint venture in 2008 and the merger with AAR in 2009 the prudent management of 
our treasury has aided us to greatly reduce dilution over the past four years. 
Value has been added to the gold and iron ore portfolios and the benefits can 
now be seen." 
 
 
About African Aura Mining Inc. 
African Aura is an established exploration and development company listed on the 
TSX-V (AUR) and London's AIM (AAAM). The Company operates two divisions, namely: 
iron ore and gold: 
 
-     The iron ore division includes its 38.5% interest in the Putu iron ore 
project in Liberia, which is moving through pre-feasibility managed by joint 
venture partner Severstal Resources (the mining division of Moscow listed OAO 
Severstal). In 2010 Putu was granted a 25 year renewable Mineral Development 
Agreement by the Government of Liberia. The division also includes a 100% 
interest in the Nkout iron ore project and surrounding iron targets in Cameroon 
which is subject to a resource definition drilling programme. 
 
-     The gold division includes the multi million ounce potential New Liberty 
greenstone gold deposit, which is being advanced through a bankable feasibility 
study, and the proximal Ndablama, Weaju, Silver Hills and Gondoja gold projects 
all within the Company's Bea Mountain 25 year renewable Mineral Development 
Agreement. . 
 
In addition, the Company presently has a 30% interest in AIM-listed diamond 
producer Stellar Diamonds Plc (AIM: STEL, www.stellar-diamonds.com). 
 
The Company has a highly motivated and experienced team with a track record of 
discovering mines and taking projects through development and into production. 
As a pioneer, African Aura has attracted some excellent strategic partners and 
shareholders, always with the objective of preserving or enhancing shareholder 
value. For further information on the Company you are invited to visit its 
website at www.african-aura.com, or SEDAR's website at www.sedar.com, or contact 
one of the following: 
 
African Aura Mining Inc. 
Luis da Silva, President & CEO                                 Tel:  +44 (0) 20 
7257 2930 
 
Evolution Securities Limited 
Simon Edwards / Tim Redfern / Neil Elliot                 Tel:  +44 (0) 20 7071 
4300 
 
Pelham Bell Pottinger 
Charles Vivian / James MacFarlane                           Tel:  +44 (0) 20 
7861 3232 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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