Aura Minerals has completed the acquisition of the Mineração Serra Grande (MSG) gold mine in Crixás, Goiás, Brazil, from AngloGold Ashanti.
The transaction was closed through Aura’s wholly owned subsidiary.
Aura paid AngloGold Ashanti an initial cash consideration of $72.8 million at closing, based on an agreed enterprise value of $76 million, adjusted for customary items as described in the share purchase agreement.
In addition, Aura will make deferred consideration payments equivalent to a 3% net share of smelter returns on MSG’s mineral resources, including the mineral reserve, payable quarterly.
Since 1998, the MSG gold mine has produced more than three million ounces of gold, with a peak annual production of 193,000 ounces in 2006.
In 2024, the mine produced 80,000oz of gold, up from 86,000oz in 2023, according to AngloGold Ashanti.
Aura Minerals Chairman and CEO Rodrigo Barbosa said: “AngloGold Ashanti has built a strong reputation in developing and operating world-class mines. MSG, located in one of Brazil’s most prominent greenstone belts, has produced, according to AngloGold Ashanti, more than three million ounces since 1998, peaking at 193,000 ounces in 2006, underlining its significant potential.
“As an agile company with a proven track record of turnarounds (e.g. Apoena and Aranzazu) and a highly experienced team, Aura is ideally positioned to unlock the full potential of the mine.
“Our team has a detailed plan, now being implemented, to recover production, reduce dilution, increase efficiency and invest to expand resources and reserves, all executed under the highest safety and sustainability standards of our Aura 360 culture.”
The MSG gold mine operation comprises one open pit mine and three mechanized underground mines. It has a dedicated metallurgical plant with an annual capacity of 1.5 million tons.
BofA Securities provided exclusive financial advisory services to Aura for the transaction.
Demarest Advogados acted as Brazilian legal advisor and Gowling WLG (United Kingdom) acted as English legal advisor to Aura.
“Aura Minerals Completes Acquisition of Mineração Serra Grande Gold Mine” was created and originally published by Mining Technology, a brand owned by GlobalData.
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