#Canada #Vancouver #Aris Mining #Soto Norte #takeover

Aris Mining to Fully Acquire Soto Norte

In a significant move to strengthen its gold production capabilities, Aris Mining Corporation has entered into a binding agreement to acquire the remaining 49% interest in the Soto Norte joint venture from MDC Industry Holding Company LLC (Mubadala). This deal, valued at $80 million, includes $60 million in cash and around 1.74 million newly issued common shares from Aris Mining, priced at $11.50 each. The full acquisition will enable Aris Mining not only to secure total ownership of Soto Norte but also positions the company on a promising trajectory towards annual gold production of 1 million ounces.

Strategic Implications of Full Ownership

The acquisition will significantly enhance Aris Mining's asset portfolio, which currently includes other high-quality projects such as Segovia, Marmato, and Toroparu. Neil Woodyer, the CEO of Aris Mining, highlighted that their strategy is shifting towards building upon their established operations, now with this major asset fully under their control. He emphasized the importance of collaboration with local governments, as demonstrated by their agreement with Colombia, to facilitate the advancement of mining projects.

Securing Soto Norte represents a major strategic undertaking that is expected to complement ongoing expansions at Segovia and Marmato while facilitating the near-term advancement of the Toroparu project in Guyana. Controlled 100% ownership will grant Aris Mining the ability to fully steer the project towards efficient and sustainable growth. Additionally, this strategy allows the company to leverage its resources towards increasing production capabilities, which will become imperative for meeting their ambitious production targets.

Financial Overview of the Deal

The acquisition is projected to amplify the existing mineral reserves on behalf of Aris Mining significantly. Post-transaction, Aris Mining's total attributable gold mineral reserves are expected to rise markedly per share, enhancing the company's net asset value. The distributions of mineral resources from Soto Norte are promising, with studies confirming a total mineral resource of 39 million tonnes containing over 7 million ounces of gold, with a production life extending well over 22 years.

Industry analysts predict that enhancing the gold production operations through this strategic acquisition will increase profitability and cash flow over the life of the mine. With a base case gold price estimated at $2,600 per ounce, projected payable gold sales could stack up to $10.4 billion, leading to a significant boost in annual earnings before interest, taxes, depreciation, and amortization (EBITDA). Additionally, lower operational costs projected at $345 per ounce for gold position Aris Mining favorably in a fluctuating market.

Project Execution and Environmental Commitment

Beyond the financial aspects, this acquisition aligns with Aris Mining's commitment to uphold rigorous environmental standards. The company has undertaken environmental studies emphasizing industry-leading design features that include a specially designed processing plant intended to formalize and support local community miners. This includes innovative practices to prevent the use of harmful substances like cyanide and mercury in processing operations, thus contributing positively to the local environment and community.

As the acquisition is completed by early December 2025, Aris Mining expects to initiate the licensing processes for Soto Norte in the first half of next year. This will ensure that not only are the economic potentials realized but also that they align with sustainable practices promoting local ecosystems.

Towards a Sustainable Future in Gold Mining

Aris Mining’s latest acquisition is a testament to its robust growth strategy, underscored by a progressive vision focused on both sustainable operational growth and community engagement. As the company gears up for the next phases of development, the groundwork laid with Soto Norte, along with the partnerships formed, sets the stage for becoming a formidable player in the global gold production landscape. The successful execution of this strategy will also shine a light on collaborative governance and the future of mining in Colombia, emphasizing the importance of sustainable practices intertwined with economic growth.

For further inquiries and updates, you can follow Aris Mining's progress through its official communication channels and financial disclosures.