Aris Mining launches US$400 million note offering

Aris Mining Corp. [ARIS-TSX, ARMN-NYSE] said Monday it has launched an offering of US$400 million principal amount of senior notes due 2029. The company said it will use the net proceeds to fund the redemption of its outstanding 6.875% senior notes due 2026.

Under the terms of the indenture governing the 2026 notes, the company will issue a conditional notice of redemption to redeem the outstanding 2026 notes. The redemption will be conditional upon the successful completion of the notes offering.

The notes will be offered and sold in the United States only to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the United States Securities Act of 1933 as amended, and to non-U.S. persons outside the United States in reliance on Regulation S under the Securities Act. The notes will be offered and solid in Canada on a private placement basis pursuant to applicable prospectus exemptions.

Aris shares eased 0.45% or $0.03 to $6.611. The shares trade in a 52-week range of $6.97 and $3.23.

Aris is an Americas focused gold producer. It operates two mines with expansions underway in Colombia. The Segovia Operations and Marmato Upper Mine produced 226,000 ounces of gold in 2023. Aris is targeting a production rate of approximately 500,000 ounces of gold per year in the second half of 2026 following a ramp-up period after the Segovia mill expansion, which is scheduled for completion in the first quarter of 2025 and the Marmato Lower Mine’s first gold pour in late 2025.

Aris also operates the 51%-owned Soto Norte joint venture in Guyana, where studies are underway on a new, smaller-scale development plan, with results expected in early 2025. Environmental licensing is advancing to develop the new underground gold, silver and copper mine. In Guyana, Aris is advancing the Toroparu project, a gold/copper project.

The company recently said it produced 53,608 ounces of gold in the third quarter of 2024, an increase of 9.0% from the second quarter of 2024. The Segovia Operations and Marmato upper mine are expected to produce 230,000 ounces of gold this year.

Soto Norte is a feasibility-stage project with high grade mineral reserves, low capital intensity, low operating costs and district-scale potential.

In the third quarter of 2024, Aris said Segovia produced 47,493 ounces of gold, compared to 6,115 ounces at the Marmato Upper mine.

Additionally, the company has made significant progress on expansion projects at Segovia and has updated mineral resource and mineral reserve estimates with an effective date of July 31, 2024. At the Marmato Lower Mine, construction is advancing on schedule and has crossed the 25% spend threshold.