Aura Minerals to acquire Guatemala gold project in US$70mn deal

In a deal worth US$74.3mn, gold producer Aura Minerals will acquire Canada's Bluestone Resources, owner of Guatemala's Cerro Blanco gold project.

As part of the deal, Aura will also acquire the Mita geothermal project, which is in an advanced-stage and involves a renewable energy project licensed to produce up to 50MW.

“Cerro Blanco stands as a world-class deposit that has encountered both social and institutional hurdles. We are confident that, along the next few years, by integrating it with Aura's 360 vision, we can refine our strategic approach to make Cerro Blanco another flagship project that exemplifies the utmost respect for social and environmental responsibilities while delivering value to all stakeholders,” Aura CEO Rodrigo Barbosa said in a statement. 

In June, Bluestone received a notice from Guatemala’s environment ministry, saying that authorities are challenging the procedure that led to the approval of the surface mining method at Cerro Blanco.

Bluestone claims that the environmental permit amendment met and exceeded the ministry’s requirements and that the company adhered to the law. 

"The transaction presents shareholders with a choice to maintain exposure to Cerro Blanco through a proven Latin America mine developer and producer with a strong balance sheet or elect cash. Aura is a well established Latin American producer with a track record of development and has the financial capacity to advance and unlock potential value from Cerro Blanco," Bluestone chairman and CEO Peter Hemstead said.

Aura Minerals has four operating mines including the Aranzazu copper-gold-silver mine in Mexico, the Apoena and Almas gold mines in Brazil, and the Minosa (San Andrés) gold mine in Honduras. 

Development projects include Borborema, currently under construction, and Matupá, both in Brazil. 

The acquisition is part of Aura Minerals' strategy to reach annual output of 450,000oz by end-2025. In the first half of this year, output reached 132,514oz, up 30% year-on-year.

Barbosa told BNamericas previously that the increase in production is also aimed at attracting shareholders that are unable to invest in smaller companies.