African Aura Mining says Geneva’s Banque Bénédict Hentsch & Cie joins register with 3.84% stake

African Aura Mining (AIM: AAAM) told investors that a Geneva-based asset manager Banque Bénédict Hentsch & Cie SA has become one of the company’s largest shareholders. The Swiss investor bought 2.7 million shares, representing 3.84% of the company, between 20th and the 22nd April.

Banque Bénédict Hentsch & Cie SA is now African Aura’s fourth largest shareholder, behind CDS & Co (17.25%), JP Morgan Asset Management (9.96%) and OAO Severstal (4.73%). After the Swiss asset manager, in fifth, Collins Stewart owns 3.35% of the company’s shares.

Last week African Aura conducted a private placing with certain institutional and other investors to raise approximately £11.3 million (C$17.5 million), issuing 17.39 million new shares at 65p (C$1.01) each.

The proceeds will fund work across its project portfolio over the next 14 months, including the New Liberty gold deposit and the Weaju deposit in Liberia, and the Nkout iron ore project in Cameroon.

"I am delighted by the response to this oversubscribed placing and I believe that it speaks volumes of the company's positioning and value generation potential for all existing and new shareholders”, African Aura president and CEO Luis da Silva said last week.

“Investors of real pedigree are placing their confidence in the management who in turn are subscribing for more than £450,000 in the placing.  We look forward to delivering on our time lines and demonstrating to the market the full worth of our assets during what should be the most value creative year for African Aura".

Specifically, African Aura told investors that it intends to use proceeds for the completion of a Bankable Feasibility Study (BFS) at New Liberty, with an estimated cost of US$9 million; to deliver a maiden resource statement for Nkout for an estimated cost of US$3.8 million; and to deliver a NI 43-101 resource statement for Weaju which is estimated to cost US$1.1 million. The company intends to use the remaining funds for general working capital purposes.

The newly formed African Aura Mining is the result of a merger between Mano River Resources and African Aura Resources. The merger was completed in October 2009, the enlarged company has a considerable portfolio of projects focused on iron ore and gold deposits in highly prospective, under explored countries of sub-Saharan Africa.

Also last week, in a separate statement, chairman David Netherway commented on the company’s new structure and goals post-merger. “With the merger came a new board with a commitment to good corporate governance and a drive to continue our proactive approach to developing the business”.

“The company has effectively been split into two operating divisions, iron ore and gold with a push to bring both of our flagship projects, New Liberty gold mine and Putu iron ore project, in Liberia into production as quickly as possible.”

http://www.proactiveinvestors.co.uk/companies/news/15997/african-aura-mining-says-genevas-banque-bndict-hentsch-cie-joins-register-with-384-stake-15997.html