AuRico Metals Announces Acquisition of Royalties on Hemlo and Eagle River Mines

TORONTO, Sept. 8, 2015 /CNW/ - AuRico Metals Inc. (TSX: AMI), ("AuRico" or the "Company") is pleased to announce the acquisition of Mineral Streams Inc. ("Mineral Streams"), a private company owning a 0.25% NSR royalty on the Williams mine at Barrick Gold Corporation's ("Barrick") Hemlo complex, a 0.5% NSR royalty on Wesdome Gold Mines Ltd.'s ("Wesdome") Eagle River mine, and a 1.5% NSR royalty on Barrick's David Bell property, which also forms part of the Hemlo complex.

Pursuant to the share purchase agreement between AuRico and each shareholder of Mineral Streams, AuRico will pay C$6,850,000 for all of the outstanding shares of Mineral Streams at closing. Net of Mineral Streams' positive working capital of about C$1 million, AuRico's acquisition cost is approximately C$5.9 million. Consideration will consist of 50% cash (for a total of C$3,425,000) and 4,753,951 AuRico Metals shares.

"We are very excited to be announcing this acquisition – our first investment to grow our royalty portfolio – only two months into our existence as AuRico Metals," commented Chris Richter, President and CEO. "The Hemlo – Williams and Eagle River royalties are an excellent fit within our portfolio of high quality cash flowing royalties located in top tier jurisdictions, and together with the Young-Davidson and David Bell royalties we now have four royalties in Ontario giving us exposure to some of the best gold mines in the province."

About Hemlo - Williams:

• The Williams mine is part of the Hemlo complex which is an underground and open pit mine operated by Barrick and located approximately 350 kilometres east of Thunder Bay, Ontario.
• Hemlo produced 206,000 ounces of gold in 2014 and is expected to produce between 200,000 and 225,000 ounces in 2015 (See Barrick's guidance per February 18, 2015 press release at www.barrick.com).
• The Hemlo complex began production in 1985 and has produced over 24 million ounces to date. Hemlo has had a strong history of replacing reserves for the last 15 years.

About Eagle River:

• The Eagle River mine has been in continuous production since 1995 and has produced over 1 million ounces of gold. The mine is operated by Wesdome and is located approximately 50 kilometres west of Wawa, Ontario.
• Eagle River produced 48,190 ounces of gold in 2014, and has a long history of replacing reserves.
• Significant upside exists from continued exploration of identified ore zones and their possible inclusion in future mine plans.

The share issuance is conditional on TSX approval, and closing of the transaction is expected to occur on or about September 15, 2015.

Qualified Persons

John Fitzgerald is AuRico Metals' Chief Operating Officer and a Qualified Person as defined by NI 43-101. Mr. Fitzgerald has reviewed and approved the technical information related to Hemlo – Williams and Eagle River in this press release.

About AuRico Metals

AuRico Metals is a mining royalty and development company whose cornerstone assets include a 1.5% NSR on the Young-Davidson Gold Mine, located in Ontario, Canada, a 2% NSR on the Fosterville Mine, located in Victoria, Australia, and 100% ownership of the advanced Kemess Project in British Columbia, Canada. AuRico Metals' goal is to deliver sustained value creation for the company's many stakeholders. AuRico Metals' head office is located in Toronto, Ontario, Canada.

Cautionary Statement

This press release contains forward-looking statements and forward-looking information as defined under Canadian and U.S. securities laws.  All statements, other than statements of historical fact, are forward-looking statements. The words "expect", "believe", "anticipate", "will", "intend", "estimate", "forecast", "budget" and similar expressions identify forward-looking statements. Forward-looking statements include information as to strategy, plans or future financial or operating performance, such as the Company's expansion plans, project timelines, production plans, projected cash flows or capital expenditures, cost estimates, projected exploration results, reserve and resource estimates and other statements that express management's expectations or estimates of future performance. Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by management, are inherently subject to significant uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements, including: uncertainty of production and cost estimates; fluctuations in the price of gold and foreign exchange rates; the uncertainty of replacing depleted reserves and the possible recalculation or reduction of reserves and resources; the risk that the Young-Davidson shaft will not perform as planned; the risk that mining operations do not meet expectations; the risk that projects will not be developed according to budgets or timelines, changes in laws in Canada, Australia and other jurisdictions in which the Company may carry on business; risks of obtaining necessary licenses, permits or approvals for operations or projects such as Kemess; disputes over title to properties; the speculative nature of mineral exploration and development; compliance risks with respect to current and future environmental regulations; disruptions affecting operations; opportunities that may be pursued by the Company; employee relations; availability and costs of mining inputs and labor; the ability to secure capital to execute business plans; volatility of the Company's share price; the effect of future financings; litigation; risk of loss due to sabotage and civil disturbances; the values of assets and liabilities based on projected future cash flows; risks arising from derivative instruments or the absence of hedging; adequacy of internal control over financial reporting; changes in credit rating; and the impact of inflation. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained herein. Such statements are based on a number of assumptions which may prove to be incorrect, including assumptions about: business and economic conditions; commodity prices and the price of key inputs such as labour, fuel and electricity; credit market conditions and conditions in financial markets generally; revenue and cash flow estimates, production levels, development schedules and the associated costs; ability to procure equipment and supplies and ability to do so on a timely basis; the timing of the receipt of permits and other approvals for projects and operations; the ability to attract and retain skilled employees and contractors for the operations; the accuracy of reserve and resource estimates; the impact of changes in currency exchange rates on costs and results; interest rates; taxation; and ongoing relations with employees and business partners. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

SOURCE AuRico Metals

For further information please see www.auricometals.ca or contact: Chris Richter, President and Chief Executive Officer, AuRico Metals Inc., 416-216-2780, [email protected]; Rob Chausse, Chief Financial Officer, AuRico Metals Inc., 416-216-2780, [email protected]