Aura Minerals Announces Update on Serrote- Bridge Loan from Banco ITAU- R$20
Million Received To-Date
TORONTO, ONTARIO -- (Marketwire) -- 02/25/13 -- Aura Minerals Inc.
("Aura Minerals" or the "Company") (TSX:ORA) is pleased to announce
that the Company's wholly-owned subsidiary Mineracao Vale Verde Ltda.
("MVV") has received funds in the amount of R$20 million (the "Bridge
Loan") from Banco Itau BBA S.A. ("Itau"), a subsidiary of Itau
Unibanco Group and one of Brazil's leading investment banks. The
Bridge Loan will be used to further develop the Company's Serrote da
Laje project located in the state of Alagoas, Brazil. The Company is
in negotiations with Itau to increase the amount of the Bridge Loan
to an aggregate of R$100 million.
The Bridge Loan, and any increase, is being used by the Company for
community engagement and specifically with respect to acquiring lands
required for the Serrote project, of which approximately 60% have
been acquired to-date, and for engineering, long-lead equipment
procurement and early site improvements.
In addition to the Bridge Loan, the Company has retained Itau as a
financial advisor to assist in structuring the project financing for
Serrote. Itau is a major Brazilian private bank and has expertise in
negotiating long-term project financing with development banks.
Jim Bannantine, President and CEO of Aura Minerals stated: "The
Bridge Loan from Itau is a significant milestone in advancing the
Serrote Project and ably demonstrates the level of confidence that
the various financial institutions have in the project. The Company
is in advanced negotiations with adjacent communities for the
remainder of the land acquisitions for Serrote. The Company is also
in advanced negotiations with potential equity partners and is
proceeding with engineering and early procurement. The Company is
confident that it will obtain long-term project financing and that
the Company will be in a position to commence construction in the
second half of 2013, with production start-up by mid-2015."
About Aura Minerals Inc.
Aura Minerals is a Canadian mid-tier gold and copper production
company focused on the exploration, development and operation of gold
and base metal projects in the Americas. The Company's producing
assets include the San Andres gold mine in Honduras, the Sao
Francisco and Sao Vicente gold mines in Brazil and the
copper-gold-silver Aranzazu mine in Mexico. The Company's core
development asset is the copper-gold-iron Serrote project in Brazil.
Activities to date on the Serrote project include detailed
negotiations for debt and equity financing, a geotechnical drill
program, the engineering has been awarded and the Company has
commenced advancing with early procurement. The Company also has the
Inaja Greenstone Belt project currently optioned to Vale.
This news release contains certain "forward-looking information" and
"forward-looking statements", as defined in applicable securities
laws (collectively, "forward-looking statements"). All statements
other than statements of historical fact are forward-looking
statements. Forward-looking statements relate to future events or
future performance and reflect the Company's current estimates,
predictions, expectations or beliefs regarding future events and
include, without limitation, statements with respect to financing
activities for the Serrote project. Often, but not always,
forward-looking statements may be identified by the use of words such
as "expects", "anticipates", "plans", "projects", "estimates",
"assumes", "intends", "strategy", "goals", "objectives" or variations
thereof or stating that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be achieved,
or the negative of any of these terms and similar expressions.
Forward-looking statements in this news release are based upon,
without limitation, the following estimates and assumptions: the
presence of and continuity of metals at the Company's Mines at
modeled grades; the capacities of various machinery and equipment;
the availability of personnel, machinery and equipment at estimated
prices; exchange rates; metals and minerals sales prices; appropriate
discount rates; tax rates and royalty rates applicable to the mining
operations; cash costs; anticipated mining losses and dilution;
metals recovery rates, reasonable contingency requirements; and
receipt of regulatory approvals on acceptable terms.
Known and unknown risks, uncertainties and other factors, many of
which are beyond the Company's ability to predict or control, could
cause actual results to differ materially from those contained in the
forward-looking statements. Specific reference is made to the most
recent Annual Information Form on file with certain Canadian
provincial securities regulatory authorities for a discussion of some
of the factors underlying forward-looking statements, which include,
without limitation, gold and copper or certain other commodity price
volatility, changes in debt and equity markets, the uncertainties
involved in interpreting geological data, increases in costs,
environmental compliance and changes in environmental legislation and
regulation, interest rate and exchange rate fluctuations, general
economic conditions and other risks involved in the mineral
exploration and development industry. Readers are cautioned that the
foregoing list of factors is not exhaustive of the factors that may
affect the forward-looking statements.
All forward-looking statements herein are qualified by this
cautionary statement. Accordingly, readers should not place undue
reliance on forward-looking statements. The Company undertakes no
obligation to update publicly or otherwise revise any forward-looking
statements whether as a result of new information or future events or
otherwise, except as may be required by law. If the Company does
update one or more forward-looking statements, no inference should be
drawn that it will make additional updates with respect to those or
other forward-looking statements.
Aura Minerals Inc.
Vice President, Corporate Development
(416) 509-0583 or (416) 649-1033
(416) 649-1044 (FAX)
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