MIAMI, March 08, 2018 (GLOBE NEWSWIRE) -- Aura Minerals Inc. (TSX:ORA) is pleased to announce that, after a competitive bid process, it has entered into a US$20,000,000 loan facility (the "Facility") and an off-take agreement (the "Off-Take Agreement") with Louis Dreyfus Company Metals ("LDC Metals") for the re-start of operations and copper concentrates to be produced from its wholly-owned Aranzazu mine (the "Project") located within the Municipality of Concepción del Oro in the north eastern region of the State of Zacatecas, Mexico.
Pursuant to the Facility, Aranzazu Holding, SA de CV, the Company's wholly-owned subsidiary, may draw-down the full amount of the Facility in three-tranches based on achieving certain milestones at the Project.
The Facility includes a 12-month grace period and is subject to customary conditions, including but not limited to, the repayment of the Company's outstanding loan with Auramet International LLC. The Facility will be guaranteed by the Company and its interests in the Project and the San Andres mine.
The Off-Take Agreement covers 100% of the copper concentrates to be produced from the Project.
Mr. Rodrigo Barbosa, the Company's President and CEO, commented, "The Facility and Off-Take Agreement with LDC Metals is a crucial next step for the re-start of operations for the Project. After a competitive bid process, we are pleased to work with LDC Metals for both the Facility and Off-Take Agreement. We have conducted extensive studies with respect to the geology and resource estimates, mining plan and sequence, engineering, metallurgy and the financial model and we are now in the process of hiring experienced and highly qualified personnel for the necessary positions at the Project."
Aura is a mid-tier gold and copper production company focused on the development and operation of gold and base metal projects in the Americas. The Company's assets include producing gold mines in Brazil and Honduras and the Project. With the completion of the merger with Rio Novo Gold Inc. on March 2, 2018, Aura now has two additional gold projects in Brazil, Almas and Matupá, and one gold project in Colombia, Tolda Fria. On December 1, 2017, Aura announced that it has agreed to sell its copper-gold-iron Serrote da Laje project in Brazil for US$40 million, closing is anticipated shortly.
This news release contains certain "forward-looking information" and "forward-looking statements", as defined in applicable securities laws (collectively, "forward-looking statements"). All statements other than statements of historical fact are forward-looking statements. Forward-looking statements relate to future events or future performance and reflect the Company's current estimates, predictions, expectations or beliefs regarding future events and include, without limitation, statements with respect to: the Project (including but not limited to, the Project's re-start), the Facility and the Off-Take Agreement and Serrote. Often, but not always, forward-looking statements may be identified by the use of words such as "expects", "anticipates", "plans", "projects", "estimates", "assumes", "intends", "strategy", "goals", "objectives" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions.
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown risks, uncertainties and other factors, many of which are beyond the Company's ability to predict or control could cause actual results to differ materially from those contained in the forward-looking statements. Specific reference is made to the most recent Annual Information Form on file with certain Canadian provincial securities regulatory authorities for a discussion of some of the factors underlying forward-looking statements, which include, without limitation, the ability of the parties to satisfy the conditions to the Facility and the Off-Take Agreement, the re-start of the Project which is dependent on a number of factors, copper, gold and certain other commodity price volatility, changes in debt and equity markets, the uncertainties involved in interpreting geological data, increases in costs, environmental compliance and changes in environmental legislation and regulation, interest rate and exchange rate fluctuations, general economic conditions and other risks involved in the mineral exploration and development industry. Readers are cautioned that the foregoing list of factors is not exhaustive of the factors that may affect the forward-looking statements.
All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements.
For further information on Aura, please visit Aura's web site at www.auraminerals.com or contact:
Aura Minerals Inc.
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