Aris Mining (TSX: ARIS) is set to materially enhance their ownership interest in the Soto Norte project in Colombia, with the company announcing this morning that it has entered into a binding term sheet to acquire the remaining 49% interest that it does not currently own.
The arrangement will see Aris acquire joint venture partner MDC Industry Holding Company’s 49% interest in the project, while the transaction will also see the termination of the related precious metals stream previously granted to Mubadala.
Consideration under the transaction is pegged at US$80 million, which is to consist of US$60 million in cash alongside the issuance of 1.7 million common shares of Aris at a price of US$11.50 per share.
“With 100% ownership of Segovia, Marmato, Toroparu, and now Soto Norte, Aris Mining has scaled to a point where our buy-and-build strategy naturally shifts to a clear focus on building. Backed by a portfolio of high-quality projects, a strong financial position, and robust operating cash flows from our existing mines, we now have a diversified, fully owned growth pipeline toward becoming a 1-million-ounce-per-year gold producer,” commented Neil Woodyer, CEO of Aris.
WATCH: Aris Mining: The Multi Billion Dollar Soto Norte PFS
Soto Norte is a pre-feasibility stage project that in September saw the latest economic study assign a $2.7 billion net present valuation, alongside an internal rate of return of 35.4% and payback period of 2.3 years. The study, which used a base case of US$2,600 an ounce gold, was based on a mining plan that would see the average annual production of 203,000 ounces of gold over a 21 year life of mine.
With full ownership of the project, Aris is said to be on a path to becoming a 1.0 million ounce per year gold producer, with Soto Norte being a key long term growth asset under that vision.
The transaction is currently expected to close by early December 2025.
Aris Mining last traded at $16.67 on the TSX.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
