Aris Mining (TSX: ARIS) has closed on the acquisition of the remaining 49% interest in the Soto Norte joint venture that it did not previously own.
The interest was acquired from MDC Industry Holding Company for total consideration of US$80 million, with consideration amounting to US$60 million in cash and the issuance of 1.7 million shares of Aris at a price of US$11.50 per share.
“With 100% ownership of Segovia, Marmato, Toroparu, and now Soto Norte, Aris Mining is focused on building a large, diversified gold business across Colombia and Guyana. Our strategy combines strong cash flow generation from our operating mines with growth from expansions, exploration, and project development,” commented Neil Woodyer, CEO of Aris Mining.
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The acquisition of the remaining interest in Soto Norte is said to put Aris on a path of being a 1.0 million gold ounce per year producer. The project currently has total mineral reserves of 9.1 million gold ounces proven and probable, and 21.7 million ounces in the measured and indicated resource category.
A prefeasibility study completed in September outlined a $2.7 billion net present value for the project, which was based on a long-life underground mining operation that would produce on average 203,000 ounces of gold a year over a 21 year mine life.
Aris Mining last traded at $21.01 on the TSX.
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