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Aura Minerals agrees to acquire Bluestone Resources

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Aura Minerals agrees to acquire Bluestone Resources

The transaction is planned to be completed in January 2025. Credit: T. Schneider via Shutterstock.

based in canada Aura Minerals has entered into a definitive arrangement agreement with Bluestone Resources to acquire all issued and outstanding common shares of Bluestone Resources.

The transaction, with a total enterprise value of up to $74.3 million, will see Aura acquire Bluestone’s Cerro Blanco gold project and Mita Geothermal project.

The value of the acquisition gives Bluestone approximately C$0.50 ($0.35) per share as of October 24, 2024, a 51% premium to the spot price and a 40% premium to the 25-day volume weighted average price on the TSX Venture Exchange .

Bluestone shareholders will have the option to receive cash or Aura shares, or a combination of both, up front at closing, with a contingent value right for potential future cash payments, subject to pro-rata.

The transaction is expected to close in January 2025, subject to all closing conditions being met.

Cerro Blanco is a high-grade gold deposit located in Jutiapa, Guatemala, according to a technical report submitted in April 2022. Mita Geothermal project has a license to generate power up to 50 MW.

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Bluestone asserted its commitment to legal standards by addressing concerns of the Guatemalan Ministry of Environment about the approval procedure for its mining method at Cerro Blanco.

Rodrigo Barbosa, CEO of Aura Minerals, said: “We can leverage our strategic approach to make Cerro Blanco another flagship project that delivers value to all stakeholders while demonstrating the highest respect for social and environmental responsibilities.”

Peter Hemstead, chairman, CEO and chairman of Bluestone Resources, said: “Following a very rigorous Strategic Review Process, the acquisition of Aura provides the best outcome for Bluestone shareholders and further advances the Cerro Blanco gold project and Mita geothermal project.

“This transaction offers shareholders the option of continuing their exposure to Cerro Blanco or electing cash through a proven Latin American mine developer and producer with a strong balance sheet.”

The boards of directors of both companies unanimously approved the deal, and Bluestone’s board of directors recommended that security holders vote in favor of the transaction.

GenCap Mining Advisory presented a fair opinion with the participation of various legal advisors for both parties.


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