Aris Mining set to acquire remaining 49% stake in Colombia mine
Aris Mining Corp. [ARIS-TSX, ARMN-NYSE] said it has struck a binding deal to require the remaining 49% interest in the Soto Norte joint venture in Colombia from MDC Industry Holding Co. LLC (Mubadala). The transaction includes the termination at closing of the associated precious metal stream previously granted to Mubadala. The total consideration is US$80 million, consisting of US$60 million in cash and 1.74 million newly issued Aris Mining common shares, priced at US$11.50 per share. The transaction is expected to close by early December.
The announcement comes after Aris said it has entered into a settlement and termination agreement with the Republic of Colombia to end arbitration proceedings brought under the Canada-Colombia Free Trade Agreement (see details below).
Aris operates two mines in Colombia, the Segovia Operations and Marmato upper mine. With expansion projects in progress, Segovia and Marmato aim to produce a combined 500,000 ounces of gold in 2026.
The company also operates the Soto Norte project, where environmental licensing is advancing to develop the new underground gold, silver and copper mine. Soto Norte is a feasibility-stage project with high grade mineral reserves, low capital intensity, low operating costs and district-scale potential.
“We now have a diversified, fully-owned growth pipeline toward becoming a one million ounce per year gold producer,’’ said Aris CEO Neil Woodyer. Aris shares advanced on the news, rising 1.9% or 32 cents to $16.99. The shares trade in a 52-week range of $16.83 and $4.74.
The arbitration referred to above was originally launched in May 2018 by Gran Colombia Gold Corp. (renamed GCM Mining) before the International Centre for Settlement of Investment Disputes (ICSID), an institution of the World Bank Group, and included a request for a cash award for alleged damages. Following Aris Mining’s formation through the merger of GCM Mining and Aris Gold in September 2022, Aris Mining continued the process but engaged with the Government of Colombia to pursue a constructive, co-operative solution.
Key elements of the settlement are as follows:
The parties have terminated the ICSID arbitration and settled the claims submitted in the case.
No cash payments were required or contemplated as part of the settlement reflecting an agreement structured on the exchange of performance obligations rather than financial consideration.
The material terms of the settlement include the entry into three “Pillar Agreements” that include performance obligations on the part of each of Aris Mining, the Republic of Colombia and relevant Colombian regulatory agencies in respect of formalization in the Marmato area, and collaborative initiatives with the National Police and Ministry of Defence.
The settlement terms also include engagement with the Attorney General’s Office to support ongoing legal and enforcement processes that protect the company’s operations and workforce.