Strategic Acquisition: Aura Minerals Expands with Bluestone’s Cerro Blanco Gold Project

2 min read | October 28, 2024 02:51 AM EDT | By Team Kalkine Media

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Strategic Acquisition: Aura Minerals Expands with Bluestone’s Cerro Blanco Gold Project — Image source: Shutterstock

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Aura Minerals acquires 100% interest in Bluestone's Cerro Blanco and Mita Geothermal projects.

Transaction approved by both companies' boards, pending regulatory and shareholder approval.

Bluestone shareholders can choose between cash or Aura shares as part of the transaction.

Aura Minerals (TSX:ORA) is set to acquire a complete interest in Bluestone Resources' Cerro Blanco gold project and the adjacent Mita Geothermal project. This acquisition is structured at a notable premium to the current market price, with compensation offered in cash, Aura shares, or a combination of both. Each Bluestone shareholder will have the option to receive cash payments or Aura shares upon the transaction's closing, alongside a contingent value right for future payments linked to Cerro Blanco's production milestones.

The transaction has garnered unanimous approval from both companies' boards and awaits additional approval from Bluestone shareholders during a special meeting. This move also requires various regulatory clearances, including those from the TSX Venture Exchange and the Toronto Stock Exchange, as well as customary closing conditions typically associated with transactions of this nature.

Cerro Blanco, located in Jutiapa, Guatemala, is recognized as a near-surface, high-grade gold deposit. The project has previously undergone technical evaluation, with a report filed in April 2022. In addition, the Mita Geothermal project is advanced and holds the license to produce substantial renewable energy.

The acquisition comes on the heels of a recent challenge from the Guatemalan Ministry of Environment concerning the surface mining method for Cerro Blanco. Bluestone is confident that the environmental permit amendment adheres to legal standards, and Aura plans to evaluate development options for the project after the transaction closes.

Rodrigo Barbosa, CEO of Aura, emphasized the significance of Cerro Blanco, citing its world-class status despite past challenges. He expressed optimism about integrating the project into Aura’s broader strategy, which prioritizes social and environmental responsibility while enhancing stakeholder value.

Peter Hemstead, President and CEO of Bluestone, remarked that the acquisition is the optimal outcome for shareholders, allowing them to maintain exposure to Cerro Blanco through a well-established Latin American developer. Aura's strong financial position will be crucial in advancing and unlocking the project's potential value.

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