Aura Minerals (TSX: ORA) is set to add another operating asset to its portfolio. The company this morning indicated that it will be acquiring the Mineracao Serra Grande gold mine in Brazil from AngloGold Ashanti.
Located in the state of Golas, the Mineracao gold mine consists of an open pit and three mechanized underground mines, alongside a processing plant capable of processing 1.5 million tonnes of ore a year.
Production in 2024 from the mine totaled 80,000 ounces of gold, which is expected to boost Aura’s annual production profile. Aura in 2024 produced a total of 267,232 gold equivalent ounces.
“Serra Grande, located in one of Brazil’s most prominent greenstone belts, has, according to AngloGold, produced over 3 million Oz since 1998 with a peak production of 193,000 Oz in 2006, underscoring its significant potential. [..] Through our disciplined capital allocation, Aura 360 culture, and a targeted exploration program, we believe we can significantly enhance performance, boost production, reduce costs, and extend the Life of Mine at Serra Grande, which could result in Serra Grande becoming a cornerstone of our portfolio,” commented Rodrigo Barbosa, CEO of Aura Minerals.
Current resources at the mine amount to 10.75 million indicated tonnes at an average grade of 3.14 g/t gold, which translates to a total of 1.08 million ounces of contained gold. Inferred resources meanwhile total 12.95 million tonnes at an average grade of 3.39 g/t, for 1.4 million ounces of contained gold. No mineral reserves were reported to exist on site.
Aura has acquired the operating mine for initial consideration of US$76 million, payable in cash, as well as deferred consideration that is said to equate to a 3% NSR on the currently identified mineral resource.
The transaction, expected to close in Q3 2025, is subject to anti-trust approval from the Brazilian government, the completion of an ongoing decommissioning of a legacy tailings dam storage facility, and no material adverse events occurring prior to closing.
Aura Minerals last traded at $31.18 on the TSX.
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