Canadian miners Aura Minerals Inc. (ORA.TO) Monday announced a definitive agreement to acquire Bluestone Resources Inc. (BBSRF) for an enterprise value of up to $74.3 million through a plan of arrangement.
As per the agreement, Aura will be acquiring a 100 percent interest in Bluestone's Cerro Blanco gold project and the adjacent Mita Geothermal project.
Bluestone is valued at around C$0.50 per share, representing a 51 percent premium to spot and a 40 percent premium to the volume weighted average price of the Bluestone shares on the TSX Venture Exchange, for the 25-day period ending October 24.
The acquisition price is to be paid in a combination of cash and Aura shares on closing, and a contingent value right.
Pursuant to the transaction, for each Bluestone share held, Bluestone shareholders will be able to elect to receive upfront consideration on closing consisting of either, a cash payment of C$0.287, or 0.0179 of an Aura share, or a combination of both.
The upfront consideration will be subject to maximum aggregate Aura shares issuable of 1.363 million representing 50 percent of the upfront consideration.
Bluestone will also receive a contingent value right providing the holder thereof with the potential to receive a cash payment of up to an aggregate amount of C$0.2120 per Bluestone share. This may be payable in three equal annual installments upon Cerro Blanco achieving commercial production.
Cerro Blanco is a near surface high-grade gold deposit, in Jutiapa, Guatemala.
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