Aris Mining (TSX: ARIS; NYSE-A: ARMN) has entered into a binding agreement with MDC Industry to acquire an additional 31% joint venture interest in the Soto Norte gold-copper project in Colombia.
The acquisition brings Aris’ interest in Soto Norte to 51%, giving it a controlling stake.
MDC Industry is a wholly owned subsidiary of Abu Dhabi-based Mubadala Investment Company PJSC.
Aris will issue 15.8 million shares to Mubadala, representing an approximate 9.9% ownership stake. Aris will issue an additional 6 million shares on receiving an environmental license for the mine.
The 21.8 million shares have a current market value of $123.1 million, Aris said.
Aris has also completed optimization studies for a smaller, more efficient Solo Norte mine development plan. The new plan reduces the environmental footprint by building a smaller processing plant with a longer operating life.
Aris also plans to target higher-grade material earlier in the mine life, as well as installing a backfill plant which will minimize surface tailings storage requirements.
“Aris Mining also plans to incorporate processing solutions for contract mining partners into the design and development of Solo Norte,” along the lines of the partnership model Aris developed at its Segovia gold-silver operations in Colombia, CEO Neil Woodyer said in the statement.
Aris is starting a pre-feasibility study for the new development plan, which it expects to complete by early 2025. As per the conditions in the joint venture, Aris will solely fund operating costs during the pre-licensing period.
In March 2022, a feasibility study estimated a 7,200 t/d capacity processing plant with average annual production of over 450,000 gold oz. over an 11-year production period, at all-in sustaining cost of US$471/oz. (C$644/oz) from a 5.0 million oz. mineral reserve.
Learn more at www.Aris-Mining.com.
