Aura Minerals Now Owns The Gold Mine Of The Borborema Project In RN And Invests In Metal Production For Expansion In The Mining Sector

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 Expansion in Metal Production Focused on the National Mining Market

Following a recently closed contract, Aura Minerals is now the owner of the gold mine of the Borborema project, located in the state of Rio Grande do Norte. Up until this Monday (05/09), the acquisition of the shares of Big River Gold represents a new strategy for the company’s growth in the mining sector with a focus on the production of this metal.

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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 outlook on the domestic market, Aura Minerals has just acquired another mine in the mining sector in Brazil. This time, the venture in question that has become part of the company is the mine of the Borborema project, located 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. 

To finalize the contract for the acquisition of the gold mine of the Borborema project, Aura Minerals is expected to spend 91.7 million Australian dollars, just over R$ 313 million. As such, the company is now the holder of 100% of the mine’s shares, which were previously owned by 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 production potential of the ore in that location. This is because the mine has a stock of 1.87 million ounces, approximately 56 tons of gold, according to studies conducted by Big Rivers. Although the company has not disclosed what its investment plan will be for its new mining project, estimates suggest that the amounts will be around US$ 90 million over the next few years. 

Gold Production in Brazil Is a Strong Investment for the Mining Sector and the Company Plans to Invest in the Market with the Purchase of the Borborema Project Mine

The demand for gold commercialization in recent months has exponentially increased in the international market, due to geopolitical conflicts occurring in Europe. This is because the ore is a way to contain inflation in extreme cases, and in situations of international instability, countries need to secure a reserve and a guarantee that their economy will be maintained in crises. 

Thus, Brazil has become the prime target of this segment, and Aura Minerals’ bet on the mine is a strong move, as the CEO of Aura Minerals, Rodrigo Barbosa, stated that “The exploration of gold requires high investments, especially in the initial phase, and carries considerable risk. However, Chile and Peru, two direct competitors of Brazil in production, are revising their legislation on gold mining, which is likely to drive away investors, and Brazil could become the new target for that Capital.”

Now, Aura Minerals is preparing to begin the mine’s preparation works to start gold production in search of even more significant growth in the mining sector over the next few years in Brazil.