Aura completes the Sale of Gold Road Mine to PPG
July 27 2022 - 6:00AM
Aura Minerals Inc. (TSX: ORA) (B3: AURA33)
(“
Aura” or the “
Company”)
announces today that the Company, through its wholly owned
subsidiary, completed the sale of all the issued and outstanding
shares of its indirect wholly owned subsidiary Z79 Resources, Inc.
(“
Z79”) which owns through Gold Road Mining Corp.
(“
GRMC”) the Gold Road mine located in Arizona to
PPG Arizona Holdings Acquisition, LP (“
PPG”), an
affiliate of Pandion Mine Finance, LP. The deal was completed for
nominal cash consideration of US$1.
Rodrigo Barbosa, President & CEO of Aura,
comments: “We are selling Gold Road at the same price we bought it.
We like to take carefully studied risks to provide good returns to
our shareholders. We knew the risks involved on Gold Road
Acquisition, which was that it did not have gold reserves and only
resources, and that is why we decided to start small, assume a
non-recourse debt, and, over the years, generate cash from the
operation to reinvest and grow it to over 50k Oz. Unfortunately,
the geological risks materialized. We did not find the expected
grades and the operations did not generate cash to reinvest and
grow. Although it remains interesting geological potential, it
would require significant additional cash and time (several years)
in exploration. Therefore, we decided to stop and focus our efforts
on our internal greenfield projects that has a more robust and
advanced geological understanding. We will not succeed in 100% of
our initiatives, and we need to know when to stop and change. I am
proud the team were able to understand the challenges and make the
decision fast.”
Background
On March 30, 2020, Aura announced, in a joint
press release issued with Para Resources Inc.
(“Para”) that Aura, through a wholly owned
subsidiary, had completed the purchase of all of the issued and
outstanding shares of Z79 from Para. As a result, Aura also
indirectly acquired Z79’s wholly owned subsidiary, GRMC.
On November 3, 2021, Aura announced its decision
not to continue investing in Z79 and GRMC to prioritize capital
allocation and management efforts to its much larger operating
assets (the San Andres gold mine in Honduras, the Ernesto/Pau-a
-Pique gold mine in Brazil, the Aranzazu copper-gold-silver mine in
Mexico) and its larger projects with higher potential, such as the
Almas and Matupa gold projects in Brazil. In addition, the Company
decided to evaluate strategic alternatives including the potential
disposal of the Gold Road mine and related assets.
About Aura 360° Mining
Aura is focused on mining in complete terms –
thinking holistically about how its business impacts and benefits
every one of our stakeholders: our company, our shareholders, our
employees, and the countries and communities we serve. We call this
360° Mining.
Aura is a mid-tier gold and copper production
company focused on the development and operation of gold and base
metal projects in the Americas. The Company’s producing assets
include the San Andres gold mine in Honduras, the Ernesto/Pau-a
-Pique gold mine in Brazil and the Aranzazu copper-gold-silver mine
in Mexico. In addition, the Company has two additional gold
projects in Brazil, Almas and Matupá, and one gold project in
Colombia, Tolda Fria.
For further information, please visit Aura’s website at
www.auraminerals.com or contact:
Rodrigo Barbosa
President
&
CEO 305-239-9332
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