The transaction also involves the sale of the adjacent Venus and Los Jarros exploration projects as well as a 50% stake in the Orion project

The Ocampo mine and Venus & Los Jarros projects are located in Chihuahua State whereas the Orion development project is situated in Nayarit State.

Mexican company Minera Frisco will close the transaction in December 2012 with AuRico Gold is expecte to employ the proceeds to reduce debts and expand investments for internal growth.

AuRico Gold president and CEO Scott Perry said that the all-cash offer strengthens the company’s balance sheet and allows AuRico to execute its strategy to achieve sustainable production from its two core assets in Canada and Mexico.

"The Transaction will allow us to deliver a meaningful return of capital to our shareholders, significantly enhance our liquidity position, give us considerable financial flexibility to support our current operations and examine brownfield expansion opportunities.

"In addition, we have gained a solid partner to further evaluate and potentially advance the Orion project in the coming years through the joint venture with Minera Frisco," added Perry.