Aura Minerals Gains Control of Borborema, Dundee Takes Royalty

By Mary de Wet

Aura Minerals gained complete ownership of Borborema after Dundee Resources converted its 20% stake in the Brazilian company into a smelter royalty.

Dundee Resources, a unit of Dundee Corp., will receive a net smelter royalty of 1.5% on the first 1.5 million ounces of gold sold, and 1% on the next 500,000 ounces. The royalty will end once the production threshold of 2 million ounces of gold has been reached, Aura Minerals said Wednesday.

Aura Minerals is planning a construction budget of $188 million at the Borborema project in Rio Grande do Norte, Brazil. Borborema will be an open-pit gold mine with anticipated production of 748,000 ounces of gold over 11 years.

The company had previously said it expects production at Borborema to begin in early 2025.

Write to Mary de Wet at [email protected]

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