Aurelia Metals Ltd (ASX:AMI) Fully Underwritten Rights Issue to Raise $10 million

Sydney, Australia (ABN Newswire) - Aurelia Metals Ltd. (ASX:AMI) (Aurelia or Company) is pleased to announce a fully underwritten, non-renounceable rights issue pursuant to which eligible shareholders will be entitled to subscribe for 1 new share for every 8 shares held at $0.234 per share to raise approximately $10.0 million (Rights Issue).

The Rights Issue proceeds will be allocated to an expanded exploration drilling campaign, working capital and the pursuit of potential company growth transactions.

The offer is fully underwritten by Key Pacific Advisory Partners Pty Ltd (Key Pacific) and fully sub-underwritten by Aurelia's largest shareholder, Pacific Road Capital Management Pty Ltd as trustee for the YTC Managed Investment Trust (Pacific Road).

The Rights Issue will be offered to shareholders at a price of $0.234 being an 8.5% discount to Aurelia's 30 day volume weighed average price and an 8.2% discount to Aurelia's last close price prior to announcement of this Rights Issue.

Aurelia's Managing Director, Rimas Kairaitis, commented "We are pleased to offer this opportunity to our shareholders and for the continuing support of our major shareholder Pacific Road. On completion of this Rights Issue, Aurelia will be very well placed to lift its exploration activity, pursue potential company growth transactions as well as retaining a sensible working capital buffer."

Hera -Nymagee Project

The Company is in the final stages of commissioning its100% owned Hera gold-lead-zinc mine which has been constructed on time and budget and has already met key project milestones with first gold production in September and the first lead-zinc concentrate shipment in November. The Hera Project is planned to deliver an estimated annual production of 39,000oz gold and 18,600t of lead-zinc over an initial reserve of 1.8Mt @ 3.6g/t Au, 2.5% Pb, 3.5% Zn and 15g/t silver.

In addition, the Company has recorded several high grade gold-lead-zinc drill intersections which are not yet included in the current Resource and Reserve estimate.

The Company has also recorded a number of highly encouraging copper, lead and zinc and silver drill intersections from exploration drilling beneath, and to the north of the Company's 95% owned Nymagee Copper Deposit.

Rights Issue proceeds will be prioritised to expanding the exploration programme to build on these results, with a view to delivering expanded Resources for both the Hera and Nymagee deposits.

Rights Issue Details

Under the offer, eligible shareholders will be entitled to subscribe for 1 new share for every 8 shares held at $0.234 per share to raise approximately $10.0 million. Eligible shareholders may apply for some, or all of their entitlement under the Rights Issue. In the event that some shareholders do not take up their rights (shortfall), eligible shareholders will be offered the right to apply for shortfall shares in addition to their existing entitlement.

To view full details, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-AMI-704145.pdf

About Aurelia Metals Ltd:

Aurelia Metals Ltd. (ASX:AMI) is focused on the development and exploration of the high grade Hera-Nymagee Project in the Cobar district of NSW.

Aurelia is actively drilling the evolving copper deposit at Nymagee with the potential that the Nymagee mineralisation may evolve into another 'Cobar Giant' similar to the world class CSA copper deposit located approximately 100km north-west along strike.

Aurelia also remains active in the exploration for copper, gold and tin on a number of tenements in the Lachlan Fold Belt of NSW.

Source:

Aurelia Metals Ltd.

Contact:

Aurelia Metals Ltd.
T: +61-2-6363-5200
F: +61-2-6361-4711
E: office@aureliametals.com
WWW: www.aureliametals.com