Reviewed by Lexie CornerJun 3 2025
Aura Minerals Inc. has signed a Share Purchase Agreement with AngloGold Ashanti plc and a wholly owned subsidiary of Aura. Under the agreement, AngloGold will sell all issued and outstanding securities of Mineração Serra Grande S.A.—the company that owns the Mineração Serra Grande gold mine in Crixás, Goiás, Brazil—to Aura's subsidiary.
Transaction Highlights:
Aura will pay AngloGold the following as consideration for the acquisition of Mineração Serra Grande (MSG):
(i) an upfront cash payment of US$76 million at closing, subject to certain working capital adjustments as of the closing date; and
(ii) deferred payments equal to a 3 % net smelter returns participation, based on the currently identified Mineral Resource of MSG (including the Mineral Reserve). These payments will be made on a quarterly basis.
The transaction does not include MSG’s current subsidiaries that hold assets unrelated to mining operations, Mineral Resources, or Mineral Reserves. These subsidiaries will be separated through a spin-off prior to the transaction’s completion (referred to as the “MSG Subsidiaries Transfer”).
Closing of the transaction is subject to several conditions, including:
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Approval by the Brazilian anti-trust authority (CADE)
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Completion by AngloGold of the decommissioning of a legacy tailings storage facility
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Completion of the MSG Subsidiaries Transfer
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No material adverse event occurring before the closing date
The transaction is expected to close by the third quarter of 2025, and no later than the fourth quarter of 2025.
AngloGold has built a strong reputation for developing and operating world-class mines. Serra Grande, located in one of Brazil’s most prominent greenstone belts, has, according to AngloGold, produced over 3 million Oz since 1998 with a peak production of 193,000 Oz in 2006, underscoring its significant potential.
Rodrigo Barbosa, President and Chief Executive Officer, Aura Minerals Inc.
Barbosa added, “As a nimble company with a proven turnaround track record (e.g., Apoena and Aranzazu) and a team with significant previous knowledge of Serra Grande, Aura is well positioned to unlock the mine’s potential. Through our disciplined capital allocation, Aura 360 culture, and a targeted exploration program, we believe we can significantly enhance performance, boost production, reduce costs, and extend the Life of Mine at Serra Grande, which could result in Serra Grande becoming a cornerstone of our portfolio.”