Gold Royalty has signed an agreement to acquire from Dundee an additional net smelter royalty (NSR) related to the Borborema gold mine and property in Brazil.
The acquisition, valued at $45m, includes a cash payment of $30m and the issuance of 3.57 million new shares by Gold Royalty.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The royalty is applicable to the Borborema project operated by Aura Minerals.
Its structure is set to impose a rate of 1.5% on the initial 1.5 million ounces (moz) of gold production, which then reduces to 1% for the subsequent 500,000oz.
Completion of this transaction is anticipated this month, subject to standard closing conditions.
Taurus Mining Royalty Fund, under a mutual cooperation agreement with Gold Royalty, has expressed interest in acquiring a 50% economic interest in the newly acquired royalty for $22.5m in cash.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThis participation hinges on the successful completion of Gold Royalty’s acquisition and the finalisation of a definitive participation agreement, alongside other customary conditions.
This new royalty acquisition will augment Gold Royalty’s existing interests in the Borborema project, which currently include a 2% NSR that steps down to 0.5% after 725,000oz of gold has been produced at the mine.
The existing royalty is also conditional on the operator’s buyback after the production of 2.25moz of payable gold or by the year 2050, whichever is earlier.
Additionally, Gold Royalty holds an option to acquire an extra 0.5% NSR contingent upon the repayment of a gold-linked loan and subject to similar operator buyback conditions.
Gold Royalty chairman and CEO David Garofalo said: “Our acquisition of an additional royalty on the Borborema Project is a testament to our confidence in the continued performance of the operation and the capabilities of the Aura Minerals team.
“We are pleased to increase our interest in this high-quality asset and to further strengthen our ties to Brazil, an important global mining jurisdiction. We continue to look for opportunities to expand our asset portfolio and to deploy capital, using a prudent and disciplined approach and prioritising near-term cash flow from high-quality assets.”
The Borborema project is situated in Rio Grande do Norte State and is expected to produce an average of 83,000oz annually during its initial three years.
Production guidance for 2025 estimates output of between 33,000 and 40,000 gold equivalent ounces with cash costs projected at between $1,084 and $1,232/oz.
The project’s capital expenditure is estimated at $188m, with a net present value standing at $182m based on consensus gold prices.
Additionally, Aura Minerals recently released preliminary production results for the fourth quarter of 2025 (Q4 2025) from its six operational mines: Almas, Apoena, Aranzazu, Borborema, Minosa and MSG (Mineração Serra Grande).
In Q4 2025, total production reached a record high of 82,067 gold equivalent ounces, representing an 11% increase over Q3 2025 and a 23% increase compared to Q4 2024.
When calculated at constant prices, Aura Minerals’ quarterly production was up by 12% relative to Q3 2025 and by 30% compared to Q4 2024.
For the entirety of 2025, Aura Minerals achieved total production of 280,414 gold equivalent ounces at current prices, a 5% rise over 2024 figures at current prices and a 9% increase at constant prices.
Based on the production guidance prices for 2025, total production amounted to 285,380 gold equivalent ounces (excluding MSG), placing it in the upper range of the company’s guidance for that year (266,000– 300,000 gold equivalent ounces).
Total production for Q4 reached 82,067 gold equivalent ounces, reflecting an increase from both Q3 2025 and Q4 2024.
