Aura Minerals to Buy Bluestone Resources in US$74.3 Million Gold Deal

Aura Minerals (TSX:ORA,OTCQX:ORAAF) announced plans to acquire Bluestone Resources (TSXV:BSR,OTCQB:BBSRF), giving it ownership of the Cerro Blanco gold project and Mita geothermal project.

Cerro Blanco, located in Jutiapa, Guatemala, is a near-surface, high-grade gold deposit. A feasibility study outlines an estimated mine life of 14 years, with peak production expected to reach 347,000 ounces of gold per year.

The project has a measured and indicated resource of 3.1 million ounces at 1.5 grams per metric ton gold.

Aura notes in Monday's (October 28) press release that on June 17, the Ministry of Environment and Natural Resources of Guatemala told Bluestone it was challenging the procedure that approved the surface mining method for Cerro Blanco. Bluestone submitted an appeal on June 21 after reviewing the legal aspects of the notification.

Aura plans to evaluate development options for Cerro Blanco after the acquisition.

Under the terms of the agreement, Aura will acquire all of Bluestone's issued and outstanding common shares.

The acquisition values Bluestone shares at C$0.50 each, and offers a 40 percent premium to the company's 25 day volume-weighted average share price. Bluestone shareholders have the option to choose a cash payment of C$0.287 per share or 0.0179 of an Aura common share, with the total number of issued Aura shares capped at 1,363,272.

Investors will also receive contingent value rights linked to the future performance of Cerro Blanco.

The transaction, valued at approximately US$74.3 million, has been approved by the boards of both companies, and is now subject to approval from Bluestone’s shareholders and regulatory authorities. It is expected to close in January 2025.

Aura believes Cerro Blanco’s proximity to its Minosa mine in Honduras will create operational synergies and cost efficiencies. In addition to Minosa, the company has three operating mines, one in Mexico and two in Brazil.

The firm is aiming to grow its output to over 450,000 gold equivalent ounces annually in the next few years.

Aura also has the Brazil-based Borborema and Matupá development stage projects. Borborema is currently in the construction phase, with commercial production expected to start in the third quarter of 2025.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.