Marks new era for the Soto Norte Gold project with Aris Gold as operator
Aris Gold to become operator of the Soto Norte gold project in Colombia. (Credit: istara from Pixabay)
Aris Gold Corporation (Aris Gold or the Company) (TSX: ARIS) (OTCQX: ALLXF) announces it has entered into a definitive agreement with MDC Industry Holding Company LLC (Mubadala), a wholly owned subsidiary of the Abu Dhabi based investment company Mubadala Investment Company PJSC, whereby Aris Gold will acquire a 20% joint venture interest in the Soto Norte gold project in Colombia, with the option to acquire a further 30% interest (the Transaction).
The Soto Norte gold project is one of the world’s largest feasibility-stage projects with high-grade mineral reserves, low capital intensity, low operating costs, and district-scale potential. Aris Gold has completed a Feasibility Study technical report on the Soto Norte project, which has been privately held since 2011, which provides a complete description of the project.
Aris Gold has also strengthened its financial position by $100 million by upsizing the existing precious metals stream at the Marmato Mine by $65 million and arranging a $35 million convertible debenture.
Aris Gold will use its position as an established member of the Colombian mining industry to ensure Soto Norte is advanced using the highest international standards to create exceptional value for its shareholders and workforce, the Colombian government, and community partners, while implementing sustainable mining practices that protect the environment and the local ecosystem. Aris Gold operates the Marmato gold mine in the Department of Caldas, where a major expansion is under way and a 30-year mine license extension was received in February 2021 by agreement with the Agencia Nacional de Mineria (ANM).
Aris Gold Chair Ian Telfer stated: “Acquiring interests in large-scale deposits with low technical risk is the right move for Aris Gold. This is how successful gold mining companies are built, and I’m pleased to see Aris Gold is delivering on this responsible growth strategy.”
Executive Director, Industrials at Mubadala and Chairman of Minesa, Danny Dweik, said: “We are delighted to bring in Aris Gold as our operating partner in Minesa. The Soto Norte project will benefit from their technical capabilities and Colombian experience, and we look forward to working with them and the local communities on bringing this world-class project to fruition.”
Aris Gold CEO Neil Woodyer stated: “Aris Gold will build a successful operation using state-of-the-art technology that will provide long-lasting benefits to the local communities and significant social development opportunities for the region. Soto Norte dramatically increases our growth profile with its potential to produce over 450,000 ounces of gold per year. Construction of Soto Norte is expected to follow the expansion of our 100%-owned Marmato gold mine.”
Director, Industrials at Mubadala and current CEO of Minesa, Mohamed Mirza, said: “The team at Aris Gold has extensive local market experience and a long track record of successfully executing complex Colombian projects. We believe they are well-positioned to support Minesa in becoming a leading gold mining company in Colombia.”
Source: Company Press Release