Aura to acquire owner of Borborema gold project in Brazil for A$92 million
(Kitco News) - Aura Minerals (TSX: ORA) announced Tuesday it has entered into a binding scheme implementation deed with Big River Gold, pursuant to which Aura, through its subsidiary, will acquire 100% of the issued and outstanding ordinary shares in the capital of Big River.
The company said that Big River shareholders (other than Dundee Resources) to receive A$0.36 in cash consideration for each Big River share held, which values Big River at a purchase price of approximately A$91.7 million.
Dundee Resources, a 19.3% Big River shareholder, has executed a cooperation and commitment deed with Aura pursuant to which Dundee Resources will (subject to certain conditions) ultimately hold a 20.0% indirect interest in Big River.
“The acquisition represents an attractive opportunity for Aura to expand its pipeline of development stage projects through the acquisition of Big River’s Borborema gold project in Brazil,” the company said in a statement.
Borborema, which is expected to operate an open pit gold project, has a JORC-compliant measured and indicated mineral resource estimate of 1.87Moz Au at 1.14 g/t Au and an additional inferred mineral resource of 0.57Moz Au at 1.0 g/t Au.
President and CEO Rodrigo Barbosa stated, “Our strategy is to grow beyond our current production plan through advancing high-quality projects that have a clear path to construction and are located in the Americas, preferably in jurisdictions where we are already operating. Borborema fits well within this strategy. We are also proud to partner with Dundee Resources on this project as they are a leader in the industry.”
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Aura is a mid-tier gold and copper production company focused on the development and operation of gold and base metal projects in the Americas. The company’s producing assets include the San Andres gold mine in Honduras, the Ernesto/Pau-a -Pique gold mine in Brazil and the Aranzazu copper-gold-silver mine in Mexico.
In addition, the company has two additional gold projects in Brazil, Almas and Matupá, one gold project in Colombia, Tolda Fria and the Gold Road mine in Arizona, United States, currently in care & maintenance.