#Canada #Toronto #Aris Mining #McFarlane Lake #Juby Gold

Aris Mining and McFarlane Lake Mining Finalize Juby Gold Project Acquisition

In a strategic move that showcases the shifting landscape of gold mining in Ontario, Aris Mining Corporation has signed a definitive asset purchase agreement with McFarlane Lake Mining Limited for the sale of the Juby Gold Project. This transaction, valued at $22 million, reflects both companies' intent to optimize their focus areas and operational efficiencies.

Overview of the Transaction

The finalized agreement entails Aris Mining's complete ownership of the Juby Gold Project, located in the highly prospective Shining Tree region of Ontario's Abitibi greenstone belt. This exploration-stage project, known for its untapped potential, also includes a 25% joint venture interest in the adjacent Knight property. Neil Woodyer, CEO of Aris Mining, emphasized that while Juby has promising prospects, its alignment with Aris's growth strategy in Latin America warranted the sale. By refocusing on core operations in Colombia and Guyana, Aris aims to streamline its resources and expand its footprint in these regions.

McFarlane Lake Mining, headed by CEO Mark Trevisiol, expressed excitement about acquiring the Juby Gold asset as it bolsters their portfolio significantly. The acquisition is set to transform McFarlane from a junior exploration company into a more comprehensive gold exploration and development entity. Trevisiol noted the cooperative relationship with Aris, underscoring the significance of this partnership as shareholders anticipate increased value from the acquisition.

Financial Details

The sale price will be structured as follows: an immediate cash payment of $10 million will be made upon closing, while the remaining balance will be settled through shares of McFarlane, equating to a maximum of 19.9% of its post-financing share capital. To ensure the full purchase price of $22 million is met, Aris could receive additional payments in cash or shares within 12 months after closing. However, it should be noted that Aris's total stake in McFarlane will not exceed 19.9% of the total share capital pending regulatory approval and other customary conditions.

The completion of this deal is contingent upon McFarlane raising a minimum of $10 million through concurrent financing, along with various regulatory stipulations. The closing is anticipated within a 90-day timeline, pending all conditions being met.

About Aris Mining

Founded in 2022, Aris Mining is on a mission to emerge as a leading gold mining enterprise in Latin America. Their operational strategy integrates current production capabilities with robust expansion initiatives to fuel significant growth. Aris Mining has successfully operated two underground mines in Colombia, which produced a total of 210,955 ounces of gold in 2024. With ongoing expansions, they are targeting an impressive production milestone of over 500,000 ounces in the near future. Their projects also include the ToroParu gold/copper initiative in Guyana and the Soto Norte joint venture, both of which are crucial elements in their growth trajectory.

About McFarlane Lake Mining

McFarlane Lake Mining is dedicated to the exploration and development of gold properties, including several historical sites in Ontario that have shown promise for future production. The company aims to become a significant player in the gold sector, leveraging the potential of the Juby Gold Project to enhance its operational scale and market presence.

The sale of the Juby Gold Project not only marks a significant transaction within the North American gold mining sector but also highlights the strategic maneuvers made by both Aris Mining and McFarlane Lake Mining in pursuit of long-term growth and operational excellence. As both companies move forward, stakeholders are keenly watching how these shifts will shape the gold mining landscape in the years ahead.