Aurion Resources Ltd.
TSX VENTURE : AU

September 16, 2009 14:27 ET

Aurion Acquires Mexican Gold Projects; Proposed Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 16, 2009) - Aurion Resources Ltd. ("Aurion") (TSX VENTURE:AU) is pleased to report that it has entered into agreements with two private mineral exploration firms to acquire 100% ownership in two gold-silver projects in Mexico.

TANGO PROJECT

The 17,457 hectare Tango gold-silver project (the "Tango Property") is road accessible and is located approximately 75 km southeast of the port city of Mazatlan and 25 km northeast of the historic Rosario gold mines.

The Tango Property hosts three epithermal gold-silver prospects and a porphyry copper-gold target. Aurion intends to complete a detailed surface mapping, prospecting, and rock and soil sampling program to advance these prospects and to generate new targets on the project.

Aurion can earn an undivided 100% beneficial interest in the Tango Property from Minera Camargo S.A. de C.V ("Minera Camargo") under the agreement, by making cash payments of US$315,000, issuing 300,000 common shares in the capital of Aurion ("Aurion Shares") (subject to TSX Venture Exchange (the "Exchange") approval) and completing US$1.1 million in exploration expenditures over 4 years. An initial US$65,000 cash payment to cover the taxes to maintain the Tango Property in good standing consistent with Mexican mining tenure laws and the issuance of 50,000 Aurion shares are payable to Minera Camargo on receipt of Exchange approval. Minera Camargo retains a 2.5% net smelter return ("NSR") which can be purchased for US$5 million or in increments of 0.5% at US$1 million. The first year exploration work commitment that is required to be made by Aurion on the Tango Property is US$275,000.

LA BANDERA PROJECT

The 8,372 hectare La Bandera project (the "La Bandera Property") is road accessible and is located approximately 50 km north of Durango City.

The La Bandera property hosts a 40 to 120 metre wide, 15 km long epithermal gold-silver vein system which has seen limited previous exploration. Aurion intends to complete a detailed mapping, prospecting and rock sampling program to advance the project.

Under a binding Letter of Intent, Aurion can earn an undivided 100% beneficial interest in the La Bandera Property from La Cuesta International S.A de C.V ("La Cuesta") by making minimum option payments starting at US$5000 (or the equivalent of 2% of gross exploration expenditures during the same period; whichever is greater) beginning in October 2009 and continuing bi-annually and increasing to US$20,000 beginning in April 2013 and issuing 70,000 Aurion shares (subject to Exchange approval) over the same period. The earn-in can be completed at any time by paying La Cuesta US$5 million less any payments already made. A 1% NSR is retained until buyout. The initial US$25,000 payment due on signing has been made by Aurion and it covers the taxes required by Mexican tenure law to maintain the concession in good standing. The first year exploration work commitment that is required to be made by Aurion is US$50,000.

FINANCING

To fund exploration activities, Aurion proposes to complete a non-brokered private placement offering, pursuant to which it will issue 4 million units ("Units") at a price of C$0.15 per Unit to raise aggregate gross proceeds of up to CDN$600,000. Each Unit will consist of one Aurion Share and one share purchase warrant ("Warrant") of Aurion. Each whole Warrant will entitle the holder thereof to acquire one additional Aurion Share for a period of 18 months from the date of issuance at an exercise price of CDN$0.25 per Warrant. If at any time after the day that is four months after the issuance of the Units, the closing price of the Aurion Shares is trading at or above $0.40 per share for 20 consecutive trading days, Aurion will have the right, on notice to the Warrant holders, to accelerate the expiry date of the Warrants to 21 business days following the date of such notice.

All securities issued under the private placement offering will be subject to a four month hold period from the date of issue. The proceeds of the proposed offering will used for advancing Aurion's mineral projects and for general working capital. The private placement offering is subject to final documentation and approval of the Exchange.

About Aurion

Aurion completed its Initial Public Offering (IPO) in October 2008, during the global financial crisis, to pursue emerging resource opportunities in the ensuing environment. It currently has only 5,000,100 shares issued and outstanding and approximately $400,000 cash in its treasury. Its strategy is to advance its projects to a stage which will attract potential joint venture partners. Aurion continues to evaluate other gold-silver projects for potential acquisition in Mexico and globally.

Mike Basha, P.Eng., P.Geo., President and CEO of Aurion, is the Qualified Person as defined by National Instrument 43-101, and is responsible for the preparation of this release.

All dollars are in US currency unless otherwise stated.

Forward-Looking Statement

Certain statements contained in this release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Companies' current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to the future exploration and expenses attributable to the Tango Property and La Bandera Property and the private placement offering. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to Aurion. The material factors and assumptions include: Aurion being able to obtain the necessary director and regulatory approvals to the private placement offering, no changes to existing Exchange Policies, exploration programs for Aurion remaining the same as forecast, Aurion being able to obtain necessary financing in order to fulfil its commitments on the Tango Property and La Bandera Property and no significant decrease in the price of gold and silver. Risk Factors that could cause actual results or outcomes to differ materially from the results expressed or implied by forward-looking information include, among other things: risks related to exploration activities, the timing and conditions imposed by the Exchange that prevent the private placement offering from occurring, changes in tax laws, general economic and business conditions and changes in the regulatory regulation. Aurion cautions the reader that the above list of risk factors is not exhaustive. The forward-looking information contained in this release is made as of the date hereof and Aurion is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

On behalf of the Board,

Michael Basha, President & CEO

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Aurion Resources Ltd.
    Mike Basha
    (709) 699-8300
    or
    Aurion Resources Ltd.
    Richard Graham
    (604) 488-8717