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Aura Buys Brazil Gold Mine for $72.8M
2 Dec
Summary
- Aura Minerals acquired the Crixás gold mine in Brazil.
- The deal involved an upfront payment of $72.8 million.
- The mine has produced over three million ounces of gold since 1998.
Aura Minerals has finalized its acquisition of the Mineração Serra Grande (MSG) gold mine located in Crixás, Goiás, Brazil. The deal, conducted through Aura's wholly-owned subsidiary, saw an upfront cash payment of $72.8 million made to AngloGold Ashanti, based on an enterprise value of $76 million. Further deferred payments are structured as a 3% net smelter returns participation.
The MSG gold mine boasts a significant production history, having yielded over three million ounces of gold since 1998, with peak production reaching 193,000 ounces in 2006. Aura Minerals' leadership expressed confidence in their ability to enhance the mine's performance through improved efficiency, reduced dilution, and strategic investments.
The operation includes both open pit and underground mining, supported by a metallurgical plant with a 1.5 million tonne annual capacity. Aura aims to unlock the mine's full potential, executing its revitalization plan under stringent safety and sustainability standards.
