Aura Minerals Announces Full Construction Decision for the Borborema Project and Secures Term Loan of US$100 million to Fund Construction

ROAD TOWN, British Virgin Islands, Sept. 06, 2023 (GLOBE NEWSWIRE) -- Aura Minerals Inc. (TSX: ORA) (B3: AURA33) (OTCQX: ORAAF) (“Aura” or the “Company”) is pleased to announce that its Board of Directors (the “Board”) has approved the construction of the Borborema project (the “Project”). In addition, the Board has authorized Aura’s indirect wholly owned subsidiary Cascar do Brasil Ltda. (“Cascar”) to enter in a credit facility for approximately US$100 million (“Term Loan”) with Banco Santander, S.A. (Brazil) to partially fund the construction of the Project.

Rodrigo Barbosa, President and CEO of Aura, comments: "Our strategic vision is clear: to expedite the development of our projects as fast as we can. Acquiring Borborema in the latter half of last year was a pivotal move. Following nine months of meticulous research and planning, we are not only initiating construction but also securing sufficient funding to ensure the project reaches completion. We remain committed to meeting our growth targets for our shareholders. The successful, on-schedule and on-budget ramp-up of the Almas Project serves as a proven model, and we anticipate replicating this success with Borborema. Furthermore, we are already nearing completion of licensing for the upcoming Matupá Project, which is slated to commence construction next year."

Mr. Barbosa continues, “We would also like to emphasize the exceptionally high after-tax IRR of the Project, standing at 40.8% on a leveraged, after-tax basis using consensus gold price projections. This figure rises to 51.9% when calculated with a gold price of $1,900 per ounce. It is worth noting that these figures do not account for the substantial potential for increasing mineral reserves once we proceed with the road relocation. In addition, our commitment to ESG best practices is fully integrated into the Borborema project. We are confident that once operational, Borborema will serve as a benchmark in ESG excellence. The project plans to utilize grey water from the adjacent city and incorporate renewable energy sources, all in alignment with our holistic 360-degree culture”.

The Term Loan will have, among other conditions:

• a five-year term to maturity, with principal payments commencing after a grace period of 24 months;
• a guarantee from Aura Minerals Inc;
• a requirement that the Project’s Net Debt to EBITDA ratio be no greater than 1.5x, to be measured after the end of the grace period.