Aura makes C$43M Bluestone bet

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Aura makes C$43M Bluestone bet
Cerro BlancoJack LundinPeter Hemstead
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Bargain buy?

Aura Minerals is to buy troubled Guatemalan gold developer Bluestone Resources for C$43 million in cash and shares at up to a 51% premium, rising to C$76 million deal conditional on the Cerro Blanco gold project reaching commercial production.Bluestone shareholders can elect to receive a cash payment of 28.7 per share or 0.0179 of an Aura common share, or a combination thereof, for a total of $43.7 million, up to a maximum aggregate of 1.4 million Aura shares.

At the start of the year, Bluestone received approval to amend its environmental permit in the final days of the Alejandro Giammattei government to change the mining method from the existing permitted underground development to surface mining development. The incoming government of Bernado Arevalo quickly announced that the Ministry of Energy and Mines would review all mining licenses following various complaints about bribes and corruption.

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Cerro Blanco Jack Lundin Peter Hemstead Rodrigo Barbosa Fenix Fruta De Norte El Tambor

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