Aris Mining (TSX: ARIS; NYSE-AM: ARMN) is raising its stake in the Soto Norte gold-copper project in Colombia to 51% from 20% after signing a deal with its joint venture partner, MDC Industry.
In return for the additional 31% stake, Aris will issue 15.8 million shares to MDC’s parent company, Abu Dhabi-based Mubadala Investment.
The shares will give Mubadala a 9.9% ownership stake in Aris. Under the agreement, Aris will issue another 6 million shares after it receives an environmental licence for the mine.
The total of 21.8 million shares have a current market value of $123.1 million, Aris said. The company has two operating mines already in Colombia — Segovia and Marmato.
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.
The company 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 prefeasibility 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-licencing period.
A 2022 feasibility study estimated the project could produce over 450,000 gold oz. annually over an 11-year mine life at all-in sustaining cost of US$471 per oz.
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