Aura Minerals to acquire Bluestone Resources for up to US$74.3 million

Company

Aura Minerals Inc.

Law Firm / Organization
Gowling WLG (Canada) LLP
Law Firm / Organization
Dorsey & Whitney LLP

Company

Bluestone Resources Inc.

Law Firm / Organization
Blake, Cassels & Graydon LLP
Law Firm / Organization
Stikeman Elliott LLP

On October 28, 2024, Aura Minerals Inc. (TSX: ORA) entered into a definitive arrangement agreement to acquire all issued and outstanding shares of Bluestone Resources Inc. (TSXV: BSR). The transaction valued Bluestone at approximately C$0.50 per share, reflecting a 51% premium to spot and a 40% premium to Bluestone’s 25-day VWAP on the TSXV as of October 24, 2024. The deal had a total enterprise value of up to US$74.3 million (approximately C$101.2 million). Bluestone shareholders could elect to receive C$0.287 per share in cash, 0.0179 Aura shares, or a combination, with a contingent value right (CVR) for additional payments tied to Cerro Blanco's commercial production.

The arrangement involved the acquisition of Bluestone’s Cerro Blanco gold project and Mita Geothermal project in Guatemala. The transaction required approval from Bluestone shareholders, regulatory and court clearances, and was expected to close in January 2025.

GenCap Mining Advisory Ltd. served as financial advisor to Bluestone, with Blake, Cassels & Graydon LLP (Canada) and Paul, Weiss, Rifkind, Wharton & Garrison LLP (U.S.) as legal advisors. Stikeman Elliott LLP advised Bluestone’s Special Committee. Aura’s legal counsel included Gowling WLG (Canada) LLP and Dorsey & Whitney LLP (U.S.).

Merger & Acquisition
Mining
$ 101,200,000
Active