AngloGold Ashanti to sell the Mineração Serra Grande Mine
AngloGold Ashanti has agreed to sell its interest in Mineração Serra Grande mine (“MSG”) located in the state of Goiás, Brazil, to Aura Minerals Inc. (“Aura”).
The Company will sell Mineração Serra Grande S.A. (“Sale”), which owns MSG to a Brazilian incorporated affiliate of Aura (“Purchaser”) for the following consideration:
- A cash consideration of $76 million on closing subject to certain working capital adjustments as at the closing date; and
- Deferred Consideration Payments equivalent to a 3% net smelter returns participation over the current Mineral Resource of MSG inclusive of the Mineral Reserve – these Deferred Consideration Payments will be paid quarterly in cash.
The recent focus at MSG has been on stabilizing the operations including the decommissioning of the legacy tailings storage facility (“TSF Decharacterization”) which is nearing completion.
However, MSG remains one of AGA’s higher cost and its smallest operation by production.
“This sale ensures we further sharpen our focus on capital allocation, operating efficiencies and the optimization of our portfolio,” said AngloGold Ashanti CEO Alberto Calderon. “We’ve also worked hard to ensure that MSG and its excellent team joins an established company which will continue to be responsible stewards of this asset for the benefit of all stakeholders.”
The Sale excludes certain subsidiaries of Mineração Serra Grande S.A which hold assets that do not form part of MSG’s mining operations and include properties. These will remain in the AGA group and will be transferred from under Mineração Serra Grande S.A. by means of a spin-off prior to closing (“MSG Subsidiaries Transfer”).
The Disposal is subject to the fulfilment of the following conditions:
- Anti-trust approval from the Brazilian authorities (CADE);
- The completion of the TSF Decharacterization work;
- The completion of the MSG Subsidiaries Transfer; and
- No Material Adverse Event occurring prior to closing.
It is expected that all the conditions will be fulfilled, and the Sale is expected to close during Q3 2025.
MSG is located in the northwest of the state of Goiás, central Brazil about 5km from the city of Crixás. The MSG operation comprises three mechanised underground mines and an open pit, with one dedicated metallurgical plant with an annual capacity of 1.5 Mt.
As at 31 December 2024, MSG has an exclusive Measured & Indicated Mineral Resource of 1.08 Moz at an average grade of 3.14 g/t, an exclusive Inferred Mineral Resource of 1.41 Moz at an average grade of 3.39 g/t and Proven & Probable Mineral Reserve of 0.37 Moz at an average grade of 2.72 g/t. In 2024, MSG produced 80 koz of gold (2023: 86 koz).
