Aura Minerals has completed the acquisition of the Mineração Serra Grande (MSG) gold mine in Crixás, Goiás, Brazil, from AngloGold Ashanti.
The transaction was finalised through Aura’s wholly owned subsidiary.
Aura paid AngloGold Ashanti an upfront cash consideration of $72.8m at closing, based on an agreed enterprise value of $76m, adjusted for customary items as outlined in the share purchase agreement.
In addition, Aura will make deferred consideration payments equivalent to a 3% net smelter returns participation over the mineral resource of MSG, 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 193,000oz in 2006.
In 2024, the mine produced 80,000oz of gold, compared to 86,000oz in 2023, according to AngloGold Ashanti.
Aura Minerals president and CEO Rodrigo Barbosa said: "AngloGold Ashanti has built a strong reputation for developing and operating world-class mines. MSG, located in one of Brazil’s most prominent greenstone belts, has – according to AngloGold Ashanti – produced over three million ounces since 1998, with a peak of 193,000 ounces in 2006, underscoring its significant potential.
"As a nimble company with a proven turnaround track record (e.g. Apoena and Aranzazu) and a team with deep experience, Aura is ideally positioned to unlock the mine’s full potential.
"Our team has a detailed plan – now under implementation – 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 an open pit and three mechanised underground mines. It features one dedicated metallurgical plant with an annual capacity of 1.5 million tonnes.
BofA Securities provided exclusive financial advisory services to Aura for the transaction.
Demarest Advogados served as Brazilian law adviser, and Gowling WLG (UK) acted as English law adviser to Aura.
