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Aura Minerals Secures Additional US$31 million in Financing and Announces Fully Funded Construction for the Borborema Project
ROAD TOWN, British Virgin Islands, Dec. 06, 2023 (GLOBE NEWSWIRE) -- Aura Minerals Inc. (TSX: ORA, B3: AURA33 and OTCQX: ORAAF) (“Aura” or the “Company”) is ple
About this update from Aura Minerals Inc.
[{"type":"text","content":" ROAD TOWN, British Virgin Islands, Dec. 06, 2023 (GLOBE NEWSWIRE) -- Aura Minerals Inc. (TSX: ORA, B3: AURA33 and OTCQX: ORAAF) (“Aura” or the “Company”) is pleased to announce that Borborema Inc. (“Borborema”), a wholly owned subsidiary and indirect owner of the Company’s Borborema gold project in Rio Grande do Norte State, Brazil (the “Borborema Project”), has entered into an agreement with Gold Royalty Corp. (“Gold Royalty”) to secure US$31 million in financing to develop the Borborema Project (the “Transaction”). The US$31 million in financing is composed of a US$21 million net smelter return royalty over the Borborema Project (the “NSR Royalty”) and a US$10 million gold-linked loan (the “Gold-Linked Loan”). Together with the US$100 million term loan previously entered into with Banco Santander Brazil and US$14 million raised through gold collars with several financial institutions, Aura, through its subsidiaries, has now secured over US$145 million towards construction of the Borborema Project, which has an estimated total construction capex of US$188 million. Key Financing Terms NSR Royalty: Upfront Payment: US$21.0 million in cash upon closing of the Transaction. Royalty Terms: Gold Royalty acquired a secured 2.0% net smelter return royalty on the first 725,000 ounces produced from the Borborema Project. Stepdown: The NSR Royalty will decrease to 0.5% after 725,000 ounces of payable gold is produced from the Borborema Project. Buyback Option: The remaining 0.5% of the NSR Royalty will be subject to a US$2.5 million buyback at Borborema’s option exercisable by Borborema after the earlier to occur of (i) of 2,250,000 ounces of payable gold being produced at the Borborema Project, or (ii) January 1, 2050. Pre-production Payments: Borborema will make quarterly payments to Gold Royalty of 250 ounces of gold (1,000 ounces per year). The pre-production payments will cease upon the earlier of (i) the date of commencement of commercial production of the Borborema Project; and (ii) the tenth (10th) year anniversary of the closing of the Transaction. ESG Co-Investment Payments: Gold Royalty will make ongoing payments to Borborema of US$30 per gold equivalent ounce delivered or paid to Gold Royalty. These payments are earmarked for ESG related investments by Borborema, up to a maximum of US$300,000. Gold-Linked Loan: Loan Principal:...