Aurea Mining Inc.
TSX VENTURE : MXA

Aurea Mining Inc.

January 18, 2006 20:26 ET

Aurea Mining Inc. Announces Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 18, 2006) -

NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES OF AMERICA

Aurea Mining Inc. ("Aurea") (TSX VENTURE:MXA) is pleased to announce that it will complete a non-brokered private placement of up to 5,000,000 units at a price of $0.25 per unit for gross proceeds of up to $1,250,000. Each unit will consist of one common share and one common share purchase warrant. Each warrant will be exercisable into one common share of Aurea at a price of $0.35 for a period of one year from the date of issuance. The terms of the warrants will also provide that if the closing price of the common shares of Aurea is at least $0.60 for ten consecutive trading days, Aurea may issue a notice to warrantholders requiring them to exercise all warrants within 30 days or the warrants will expire.

The proceeds of the private placement will be used to fund exploration of Aurea's mineral properties, within the Guerrero Gold Belt in the State of Guerrero, Mexico and to repay indebtedness to three companies controlled by directors of Aurea, as announced on November 4, 2005.

Aurea is also pleased to announce that it has retained Cypress Point Capital Inc. ("Cypress") to provide investor relations consulting services. Aurea will pay Cypress a monthly fee of $5,000 during the term of the agreement and has granted Cypress options to purchase 300,000 common shares of Aurea at a price of $0.26 for a period of five years in accordance with Aurea's Stock Option Plan. In addition, Aurea has also granted to Joseph Fodor, a director of Aurea, options to purchase 93,000 common shares at a price of $0.26 for a period of five years in accordance with Aurea's Stock Option Plan.

Each of the foregoing announcements is subject to regulatory approval.

Aurea Mining Inc., via its wholly-owned subsidiary headquartered in Mexico City, is exploring for gold within its strategic land position in the area of southern Mexico, known as the Guerrero Gold Belt in the State of Guerrero, Mexico.

For further information please visit our web site www.aureamining.com.

On behalf of the Board of Directors

Richard Whittall, President and Chief Executive Officer

This news release may contain forward-looking statements regarding future exploration programs and events. Actual results may differ materially from those currently anticipated in such statements.


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Aurea Mining Inc.
    Richard Whittall
    President and Chief Executive Officer
    (604) 806-6110
    (604) 806-6112 (FAX)
    www.aureamining.com