The Borborema project's gold mine, located in Rio Grande do Norte, is one of the largest in all of Brazil and is Aura Minerals' new bet for expanding metal production with a focus on the national mining market
After a recently closed contract, the company Aura Minerals is now the owner of the gold mine of the Borborema project, which is located in the state of Rio Grande do Norte. Until this Monday, (09/05), the acquisition of Big River Gold shares is a new company strategy for its growth in the sector mining with a focus on the production of this metal.
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Company Aura Minerals acquires shares in Big River Gold and becomes the owner of the Borborema project gold mine to intensify metal production
With an increasingly expansive look at the national market, the company Aura Minerals has just acquired another mine in the mining segment in Brazil. This time, the project that came into question and became the company's property is the Borborema project mine, 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.
And, for the finalization of the contract for the acquisition of the gold mine of the Borborema project, Aura Minerals had to spend 91,7 million Australian dollars, just over R$ 313 million. Thus, the company now owns 100% of the shares in the mine, which previously belonged to 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 for the Borborema project by Aura Minerals was made due to the high ore production potential that the site has. This is because the mine has a stock of 1,87 million ounces, about 56 tons of gold, according to studies carried out by Big Rivers. And, although the company has not disclosed what the investment plan will be for its new mining project, it is estimated that the values 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 intends to invest in the market with the purchase of the Borborema project mine
The search for the sale of gold in recent months has increased exponentially in the international market, due to the geopolitical conflicts that are taking place in Europe. This happens because ore is a way to contain inflation in extreme cases and, in situations of international instability, countries need to guarantee a reserve and a guarantee that their economy will be maintained in crises.
Thus, Brazil has become the main target of this segment and Aura Minerals' bet on the mine is a strong move, since the CEO of Aura Minerals, Rodrigo Barbosa, stated that “Gold exploration requires high investments, mainly in early stage and carries considerable risk. However, Chile and Peru, two direct competitors of Brazil in production, are reviewing their legislation on gold mining, which tends to drive away investors and Brazil may be the new target for this Capital”.
Now, Aura Minerals is getting ready to start the works to prepare the mine for the start of gold production in the search for an even more expressive growth in the mining sector over the next few years in Brazil.
