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Aura Minerals Announces New and Improved Offtake Agreement with Trafigura starting in 2022
ROAD TOWN, British Virgin Islands, Nov. 19, 2020 (GLOBE NEWSWIRE) -- Aura Minerals Inc. (TSX: ORA) (B3: AURA33) (the “Company” or “Aura”) announces that its who
About this update from Aura Minerals Inc.
[{"type":"text","content":" ROAD TOWN, British Virgin Islands, Nov. 19, 2020 (GLOBE NEWSWIRE) -- Aura Minerals Inc. (TSX: ORA) (B3: AURA33) (the “Company” or “Aura”) announces that its wholly-owned subsidiary, Aranzazu Holding S.A. de C.V. (“Aranzazu”) has recently completed a competitive bidding process for a new offtake agreement with respect to the copper and gold concentrate produced at the Company’s Aranzazu mine. In connection with the completion of the bidding process, Aranzazu has entered into an offtake agreement (the “New Agreement”) with Trafigura México, S.A. de C.V. (“Trafigura”), pursuant to which Trafigura has agreed to purchase 100% of the copper and gold concentrate produced at Aranzazu during the term of the New Agreement. The New Agreement is effective as of the beginning of 2022 and continues until the end of 2024. The current offtake agreement in place with IXM Metals (the “Existing Agreement”) will remain in force until the end of 2021. As result of a strong competitive process and improved market conditions for copper, Aura expects Aranzazu to achieve material savings under the New Agreement, improving gross margins by 4 percentage points compared to the terms of the Existing Agreement. Rodrigo Barbosa, the Company’s President and CEO noted: “In 2018 our priority was to restart Aranzazu under a detailed and sustainable production plan. Since we restarted the project last year, we have been investing in geology and exploration in order to increase the life of mine as well, besides optimizing operational efficiencies. As result, we have been able to exceed initial expectations set in the Feasibility Study for certain KPIs, such as recoveries and dilution. Now, we were able to improve the conditions of our offtake agreement, taking advantage of a competitive process and favorable market conditions”. Forward-Looking Information This press release contains “forward-looking information” and “forward-looking statements”, as defined in applicable Canadian securities laws (collectively, “forward-looking statements”) which include, but are not limited to: (i) the economic benefits of the New Agreement; (ii) the sale of copper and gold concentrate to Trafigura; (iii) the results of the Feasibility Study and the ability of the Company to achieve or exceed such results; (iv) exploration results and the extension of life of mine of Aranzazu; (v) ...