All amounts in US dollars, unless otherwise indicated
VANCOUVER, BC, April 12, 2022 /PRNewswire/ - Aris Gold
Corporation (Aris Gold or the Company) (TSX: ARIS) (
OTCQX: ALLXF) announces that, further to the Company's news release
of March 21, 2022, it has closed the
acquisition of a 20% joint venture interest in the Soto Norte gold
project in Colombia, with the
option to acquire a further 30% interest. Aris Gold has also
upsized the existing precious metals stream at the 100%-owned
Marmato Mine by $65 million and
arranged a $35 million debenture (the
Debenture) that is convertible into common shares of Aris Gold at a
conversion price of US$1.75
(approximately C$2.211).
Aris Gold CEO Neil Woodyer
stated: "Soto Norte is a large-scale gold project that is
well-aligned with our core strengths as mine operators in
Colombia. The construction of Soto
Norte is expected to follow the expansion of our 100%-owned Marmato
gold mine in Colombia. We look
forward to engaging with the Soto Norte communities and developing
a mine that implements sustainable mining practices to ensure
protection of the environment and the local ecosystem."
Soto Norte Highlights
- Soto Norte hosts Indicated mineral resources of 8.5 million
ounces (Moz) of gold and Inferred mineral resources of 3.6 Moz of
gold
-
- Indicated mineral resources of 48.1 million tonnes (Mt) at 5.47
grams per tonne (g/t) of gold, 35.8 g/t of silver, and 0.18% copper
containing 8.5 Moz of gold, 55.3 Moz of silver, and 193 million
pounds (Mlb) of copper, inclusive of mineral reserves
- Inferred mineral resources of 27.3 Mt at 4.06 g/t of gold, 25.9
g/t of silver, and 0.18% copper containing 3.6 Moz of gold, 22.8
Moz of silver, and 107 Mlb of copper
- Soto Norte Feasibility
Study2 demonstrates production of over
450,000 gold ounces per year at average AISC of $471/oz from 5.0 Moz Mineral Reserve
-
- 14-year mine life, based on Probable mineral reserves of 24.8
Mt at 6.22 g/t of gold, 34.4 g/t of silver, and 0.19% copper,
containing 5.0 Moz of gold, 27.4 Moz of silver, and 103 Mlb of
copper
- Project NPV5% is $1.5
billion and IRR is 20.8%, at base case gold price of
$1,675 per ounce
- Project NPV5% is $2.0
billion and IRR is 24.4%, at gold price of $1,925 per ounce
- Aris Gold will provide a new and informed approach to
environmental permitting: Following detailed technical feedback
from the Colombian environmental regulatory authority (ANLA) in
2021, drafting of a new Environment and Social Impact Assessment
(ESIA) commenced and will include a robust Quality Assurance and
Quality Control process for regulatory compliance. As operator,
Aris Gold's team will contribute its knowledge and experience as
well as provide a respectful licensing process with its local
stakeholders.
- Social development opportunities: Soto Norte will be a
significant project for the local and regional communities,
providing employment and skills training for up to 1,800
construction contractors and up to 940 full time operations
personnel, and a strategy to procure goods and services from the
regional community.
|
_____________________________
|
|
1 Based on a
US$/C$ exchange rate of 1.2621 USD:CAD as published on the Bank of
Canada website as of April 11, 2022.
|
|
|
|
2 NI 43-101
Technical Report Feasibility Study of the Soto Norte Gold Project,
Santander, Colombia with an effective date of January 1, 2021
prepared by SRK Consulting (UK) Limited, SNC Lavalin, and Minesa
(the Feasibility Study). The Technical Report is available on SEDAR
under Aris Gold's profile and on Aris Gold's website at
www.arisgold.com.
|
Aris Gold Corporate Finance
Update
To strengthen its financial position, Aris Gold has amended the
existing $110 million precious metals
stream at the Marmato mine with Wheaton Precious Metals
International to increase the aggregate total funding amount by
$65 million to $175 million, with $15
million received by Aris Gold at closing of the transaction
and (ii) $50 million payable during
the construction and development of the new Lower Mine.
In addition, Aris Gold has issued, through its wholly owned
subsidiary Aris Gold Acquisition Corp., a $35 million convertible senior unsecured
Debenture to GCM Mining Corp. (GCM Mining - TSX:GCM) (the
Issuance). At any time after 12 months from closing, the Debenture
is convertible, in whole or in part, into 20,000,000 common shares
of Aris Gold (Aris Common Shares) at a conversion price of
US$1.75 per Aris Common Share. The Debenture pays interest
monthly with an annualized coupon of 7.5%. The ability of GCM
Mining to fully execute its conversion rights under the Debenture
is subject to disinterested Aris Gold shareholder approval at the
next annual meeting of shareholders, which will be held on
June 3, 2022.
Soto Norte Mineral Resources and
Mineral Reserves
Table 1: Soto Norte
Mineral Resources, inclusive of Mineral Reserves, effective May 22,
2019.3
|
Classification
|
Tonnes
|
Grade
|
Contained
Metal
|
|
(kt)
|
Gold
(g/t)
|
Silver
(g/t)
|
Copper
(%)
|
Gold
(koz)
|
Silver
(koz)
|
Copper
(klb)
|
Indicated Mineral
Resources
|
48,062
|
5.47
|
35.8
|
0.18
|
8,454
|
55,324
|
193,422
|
Inferred Mineral
Resources
|
27,343
|
4.06
|
25.9
|
0.18
|
3,571
|
22,754
|
107,281
|
Notes:
|
|
1)
|
Mineral resources are
not mineral reserves and do not have demonstrated economic
viability.
|
2)
|
Indicated mineral
resources are presented inclusive of probable mineral
reserves.
|
3)
|
The mineral resource
estimate was prepared by Benjamin Parsons, MSc, MAusIMM (CP) of SRK
Consulting, who is a Qualified Person as defined by National
Instrument 43-101 – Standards of Disclosure for Mineral
Projects (NI 43-101). Mr. Parsons has reviewed and verified the
drilling, sampling, assaying, and QAQC protocols and results, and
is of the opinion that the sample recovery, preparation, analyses,
and security protocols use for the mineral resource estimate are
reliable for that purpose.
|
4)
|
Totals may not add up
due to rounding.
|
5)
|
Mineral Resources are
reported above a cut-off value of $47 per tonne, which considers
metal price assumptions of $1,300 per ounce of gold, $18 per ounce
of silver, and $6,800 per tonne of copper, metallurgical recovery
assumptions of 92% for gold and silver and 76% for copper, marginal
mining costs, processing costs, general and administrative costs,
and other factors.
|
6)
|
Aside from the
requirements to amend and extend the Soto Norte 0095-68 mining
license and to prepare, submit, and receive approval of a new ESIA
from ANLA, there are no known legal, political, environmental, or
other risks that could materially affect the potential development
of the mineral resources and mineral reserves.
|
|
__________________________________
|
|
3 For full
details on the Soto Norte Mineral Resources Estimates, see the
Feasibility Study.
|
Table 2: Soto Norte
Mineral Reserves, effective January 1,
2021.4
|
Classification
|
Tonnes
|
Grade
|
Contained
Metal
|
|
(kt)
|
Gold
(g/t)
|
Silver
(g/t)
|
Copper
(%)
|
Gold
(koz)
|
Silver
(koz)
|
Copper
(klb)
|
Probable Mineral
Reserves
|
24,767
|
6.22
|
34.4
|
0.19
|
4,950
|
27,386
|
102,868
|
Notes:
|
|
1)
|
The mineral reserve
estimate has been approved by Chris Bray, BEng, MAusIMM (CP) of SRK
Consulting, who is a Qualified Person as defined by NI
43-101.
|
2)
|
Totals may not add up
due to rounding.
|
3)
|
Mineral Reserves are
reported above a cut-off value of $120 per tonne, which was
selected based on a hill of value study to optimize value, and
which considers metal price assumptions of $1,300 per ounce of
gold, $18 per ounce of silver, and $7,000 per tonne of copper,
metallurgical recovery assumptions of 92.5% for gold, 92% for
silver, and 76% for copper, mining costs, processing costs, general
and administrative costs, and other factors.
|
4)
|
Aside from the
requirements to amend and extend the Soto Norte 0095-68 mining
license and to prepare, submit, and receive approval of a new ESIA
from ANLA, there are no known legal, political, environmental, or
other risks that could materially affect the potential development
of the mineral resources and mineral reserves.
|
Qualified Persons
The technical information in this news release was reviewed and
approved by Pamela De Mark, P.Geo,
Vice President Exploration of Aris Gold, who is a Qualified Person
as defined by NI 43-101.
About Aris Gold
Aris Gold is a Canadian mining company listed on the TSX under
the symbol ARIS and on the OTCQX under the symbol ALLXF. The
Company is led by an executive team with a demonstrated track
record of creating value through building globally relevant gold
mining companies. In Colombia,
Aris Gold operates the 100%-owned Marmato mine, where a
modernization and expansion program is under way, and operates the
Soto Norte joint venture, where environmental licensing is
advancing to develop a new gold mine. Aris Gold plans to pursue
acquisition and other growth opportunities to unlock value creation
from scale and diversification.
Additional information on Aris Gold, including the Soto Norte
feasibility study, can be found at www.arisgold.com and
www.sedar.com.
|
______________________________________
|
|
4 For full
details on the Soto Norte Mineral Reserve Estimates, see the
Feasibility Study.
|
Forward-looking
Information
This news release contains "forward-looking information" or
"forward-looking statements" within the meaning of Canadian
securities legislation. All statements included herein, other than
statements of historical fact, including without limitation
statements relating to: the Soto Norte project; Aris Gold's
relationship with local communities and the protection of the Soto
Norte project's ecosystem; the new ESIA; the Company's next annual
meeting of shareholders; the Feasibility Study; all-in sustaining
costs; and statements related to the potential of the Soto Norte
project are forward-looking. Generally, the forward-looking
information and forward- looking statements can be identified by
the use of forward looking terminology such as "advancing",
"become", "believe", "estimate", "expect", "forward", "intend",
"plan", "potential" or variations of such words and phrases or
state that certain actions, events or results "could", "may",
"might" or "will" or "would" be taken, "occur" or "be
achieved".
Forward looking information and forward looking statements,
while based on management's best estimates and assumptions, are
subject to known and unknown risks, uncertainties and other factors
that may cause the actual results, level of activity, performance
or achievements of Aris Gold to be materially different from those
expressed or implied by such forward-looking information or forward
looking statements, including but not limited to: the ability of
the Aris Gold management team to successfully integrate with the
current operations, successful completion of the ESIA and receipt
of approval from ANLA (including the Soto Norte 0095-68 mining
license amendment and extension from the ANM), receipt of
securities regulatory and stock exchange approvals, risks related
to international operations, risks related to general economic
conditions, uncertainties relating to operations during the
COVID-19 pandemic, actual results of current exploration
activities, availability of quality assets that will add scale,
diversification and complement Aris Gold's growth trajectory;
changes in project parameters as plans continue to be refined;
fluctuations in prices of metals including gold; the ability to
convert mineral resources to mineral reserves; fluctuations in
foreign currency exchange rates, increases in market prices of
mining consumables, risks associated with holding derivative
instruments (such as credit risks, market liquidity risk and
mark-to-market risk), possible variations in mineral reserves,
grade or recovery rates; failure of plant, equipment or processes
to operate as anticipated; changes in national and local government
legislation, taxation, controls, regulations, regulations and
political or economic developments in Canada or Colombia, accidents and operations, labour
disputes, title disputes, claims and limitations on insurance
coverage and other risks of the mining industry; delays in
obtaining governmental approvals including obtaining required
environmental and other licenses, or in the completion of
development or construction activities, changes in national and
local government regulation of mining operations, tax rules and
regulations, and political and economic developments in countries
in which the Company operates, as well as those factors discussed
in the section entitled "Risk Factors" in Aris Gold's most recent
AIF available on SEDAR at www.sedar.com.
Although Aris Gold has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking information and forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended. There can be no assurance
that such information or statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such information or statements. The Company has and
continues to disclose in its Management's Discussion and Analysis
and other publicly filed documents, changes to material factors or
assumptions underlying the forward-looking information and
forward-looking statements and to the validity of the information,
in the period the changes occur. The forward-looking statements and
forward-looking information are made as of the date hereof and Aris
Gold disclaims any obligation to update any such factors or to
publicly announce the result of any revisions to any of the
forward-looking statements or forward-looking information contained
herein to reflect future results. Accordingly, readers should not
place undue reliance on forward-looking statements and
information.
View original
content:https://www.prnewswire.com/news-releases/aris-gold-completes-soto-norte-joint-venture-investment-and-becomes-operator-301523798.html
SOURCE Aris Gold Corporation