The gold mine of the Borborema project, located in Rio Grande do Norte, is one of the largest in all of Brazil and is Aura Minerals' new bet for expanding the production of the metal with a focus on the national mining market.
After a recently signed contract, the company Aura Minerals is now the owner of the gold mine of the Borborema project, which is located in the state of Rio Grande do Norte. Until this Monday, (05/09), the acquisition of Big River Gold shares is a new company strategy for its growth in the sector mining with a focus on the production of this metal.
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Companhia Aura Minerals acquires shares of Big River Gold and becomes owner of the gold mine of the Borborema project to intensify metal production
With an increasingly expansive view of the national market, the company Aura Minerals has just acquired another mine in the mining segment in Brazil. This time, the enterprise that came into question and became the company's is the Borborema project mine, in the municipality of Currais Novos, in Rio Grande do Norte, about 170 km from Natal, which previously belonged to the Australian company Big River Gold.
And, for the finalization of the contract for the acquisition of the gold mine of the Borborema project, Aura Mineralsteve had to disburse 91.7 million Australian dollars, just over R$ 313 million. Thus, the company is now the holder of 100% of the mine's shares, which previously belonged to Big River Gold, and will be able to use the plant for its gold production project in Brazil. The purchase of this asset is the company's new move to expand its presence in the Brazilian mining market throughout 2022.
The choice of the gold mine of the Borborema project by Aura Minerals was made due to the high potential of ore production that the site has. That's because the mine has a stock of 1.87 million ounces, about 56 tons of gold, according to studies carried out by Big Rivers. And, although the company has not disclosed what the investment plan will be in its new mining project, it is estimated that the values are around US$ 90 million over the next few years.
Gold production in Brazil is a strong investment for the mining sector and the company intends to invest in the market with the purchase of the Borborema project mine
The search for the commercialization of gold in recent months has increased exponentially in the international market, due to the geopolitical conflicts that are taking place in Europe. This happens because ore is a way to contain inflation in extreme cases and, in situations of international instability, countries need to guarantee a reserve and a guarantee that their economy will be kept in crisis.
Thus, Brazil has become the major target of this segment and Aura Minerals' bet on the mine is a strong move, since the CEO of Aura Minerals, Rodrigo Barbosa, stated that “Gold exploration requires high investments, especially in the early stage and carries considerable risk. However, Chile and Peru, two direct competitors of Brazil in production, are reviewing their legislation on gold mining, which tends to alienate investors and Brazil may be the new target for this Capital”.
Now, Aura Minerals is getting ready to start preparing the mine for the start of gold production in the search for an even more expressive growth in the mining sector over the next few years in Brazil.