Aranzazu Copper Mine Reopening NRAura Minerals management hit another home run out of the park! Instead of using Serrote money to fund Aranzazu's restart, they are doing it with a $20 million USD offtake agreement and financing which immediately saves Aura Minerals $1.11 million USD per quarter in care and maintenance costs and adds $4 million USD per year to the bottom line.
Here's Aura Minerals news release:
Aranzazu Reopening News Release Aura Minerals Announces US $20 M Loan Facility and Off-Take Agreement with LDC Metals for Re-Start of Aranzazu
03/08/2018
MIAMI, March 08, 2018 (GLOBE NEWSWIRE) -- Aura Minerals Inc. (TSX:ORA) is pleased to announce that, after a competitive bid process, it has entered into a US$20,000,000 loan facility (the “Facility”) and an off-take agreement (the “Off-Take Agreement”) with Louis Dreyfus Company Metals (“LDC Metals”) for the re-start of operations and copper concentrates to be produced from its wholly-owned Aranzazu mine (the “Project”) located within the Municipality of Concepcin del Oro in the north eastern region of the State of Zacatecas, Mexico.
Pursuant to the Facility, Aranzazu Holding, SA de CV, the Company’s wholly-owned subsidiary, may draw-down the full amount of the Facility in three-tranches based on achieving certain milestones at the Project.
The Facility includes a 12-month grace period and is subject to customary conditions, including but not limited to, the repayment of the Company’s outstanding loan with Auramet International LLC. The Facility will be guaranteed by the Company and its interests in the Project and the San Andres mine.
The Off-Take Agreement covers 100% of the copper concentrates to be produced from the Project.
Mr. Rodrigo Barbosa, the Company’s President and CEO, commented, “The Facility and Off-Take Agreement with LDC Metals is a crucial next step for the re-start of operations for the Project. After a competitive bid process, we are pleased to work with LDC Metals for both the Facility and Off-Take Agreement. We have conducted extensive studies with respect to the geology and resource estimates, mining plan and sequence, engineering, metallurgy and the financial model and we are now in the process of hiring experienced and highly qualified personnel for the necessary positions at the Project.”
About Aura
Aura is a mid-tier gold and copper production company focused on the development and operation of gold and base metal projects in the Americas. The Company’s assets include producing gold mines in Brazil and Honduras and the Project. With the completion of the merger with Rio Novo Gold Inc. on March 2, 2018, Aura now has two additional gold projects in Brazil, Almas and Matup, and one gold project in Colombia, Tolda Fria. On December 1, 2017, Aura announced that it has agreed to sell its copper-gold-iron Serrote da Laje project in Brazil for US$40 million, closing is anticipated shortly.