Aura Minerals announced the sale of Mineração Vale Verde, which owns the Serrote da Laje project, for US$ 40 million. Pursuant to a purchase and sale agreement advised by Appian Capital Advisory LLP, Aura’s wholly-owned subsidiary, the company will sell 100% of its interest in MVV to the purchaser group.
The payment of US$ 30 million will be made up in cash and the remaining US$ 10 million subordinated with a unsecured note.
Rodrigo Barbosa, President and CEO of Aura Minerals commented “Serrote is a first-class project and the decision to sell our interests followed careful consideration of our options. The consideration received from the sale unlocks significant value to our shareholders and accelerates our strategy to further develop our existing assets and pursue new growth opportunities. The sale of Serrote to the purchasers is good for the city of Arapiraca and the State of Alagoas and we wish all stakeholders and the purchaser group advised by Appian continued success in the development and operation of Serrote.”
Michael Scherb, Founder and General Partner of Appian and Vincent Jacheet, Managing Partner of Appian, added, “Following the detailed and professional work completed to date by Aura on the Serrote project, we look forward to working with the purchasers and local partners for the successful development of the project, post-closing. We are excited to support the successful development of another project in Brazil after our previous successful experiences in the country.”
The transaction is targeted to close before the end of February 2018, subject to customary closing conditions. BNP Paribas Securities Corp. is acting as the financial advisor to Aura Minerals.