What's Happening?
Aris Mining Corporation has announced the acquisition of the remaining 49% interest in the Soto Norte joint venture in Colombia from Mubadala, securing full ownership of the project. The transaction, valued
at $80 million, includes $60 million in cash and newly issued shares. This acquisition increases Aris Mining's proven and probable reserves by 32.8% and measured and indicated resources by 18.8%. The Soto Norte project, now fully owned, is expected to enhance Aris Mining's growth strategy, positioning the company to become a 1-million-ounce-per-year gold producer. The project has a post-tax net present value of $2.7 billion, with an internal rate of return of 35.4%, and is anticipated to generate significant cash flows.
Why It's Important?
The acquisition of Soto Norte is a strategic move for Aris Mining, significantly expanding its resource base and enhancing its growth potential. Full ownership allows the company to streamline operations and focus on long-term development strategies. The increased reserves and resources bolster Aris Mining's position in the gold mining industry, potentially leading to increased investor confidence and financial stability. The project's robust economic indicators, including a high IRR and substantial NPV, suggest strong profitability and cash flow generation, which could drive further investment and expansion opportunities.
What's Next?
With the acquisition expected to close by December 2025, Aris Mining will focus on advancing the Soto Norte project, including finalizing environmental studies and submitting licensing applications in early 2026. The company plans to leverage its full ownership to optimize project development and integrate industry-leading environmental and social design features. As Aris Mining progresses, stakeholders will likely monitor the company's ability to achieve its production targets and manage operational challenges, particularly in the context of regulatory and environmental considerations.
