ARIS MINING ANNOUNCES CLOSING OF US$450 MILLION SENIOR NOTES OFFERING TO FUND REDEMPTION OF OUTSTANDING 6.875% SENIOR NOTES

Rhea-AI Summary

Aris Mining has successfully completed a US$450 million offering of 8.000% Senior Notes due 2029. The company plans to use the proceeds to redeem its outstanding 6.875% Senior Notes due in 2026 on November 20, 2024, and for working capital purposes. The offering was upsized due to strong investor demand and priced at 8.00%, below the indicated market range of 8.25% to 8.50%. This financing extends the company's long-term debt maturity to October 31, 2029, while increasing cash reserves during ongoing expansions at Segovia and Marmato.

Positive

• Successful completion of US$450 million senior notes offering
• Strong investor demand leading to upsized offering
• Better pricing at 8.00% vs. expected 8.25-8.50% range
• Extension of debt maturity to 2029
• Increased cash reserves for growth initiatives

Negative

• Higher interest rate on new notes (8.000% vs. 6.875% on existing notes)
• Increased debt load (US$450M vs. previous US$300M)

Insights

Financial Analyst

This $450M senior notes offering represents a significant financial restructuring with multiple positive implications. The company secured better-than-expected pricing at 8%, below the indicated range of 8.25-8.50%, demonstrating strong market confidence. The deal effectively refinances existing $300M notes while providing $150M additional liquidity for growth initiatives.

The extended maturity to 2029 improves the debt profile and provides operational flexibility during the critical expansion phase at Segovia and Marmato mines. While the new interest rate is higher than the previous 6.875%, the increased cost is offset by the strategic benefits of extended maturity and additional working capital. The strong investor demand despite challenging market conditions for mining companies indicates positive sentiment toward Aris Mining's growth trajectory.

Market Research Analyst

The successful upsizing and favorable pricing of this debt offering amid current market conditions reveals strong institutional confidence in the gold mining sector and Aris Mining specifically. The timing aligns with positive momentum in gold prices and emerging markets, creating optimal conditions for refinancing. The $150M additional capital provides a important buffer during the company's expansion phase, reducing execution risk for ongoing projects.

The robust demand despite higher rates suggests investors are positively viewing gold miners with clear growth catalysts and established operations. This transaction strengthens Aris Mining's competitive position in the mid-tier gold producer segment and enhances financial flexibility during a period of significant capital investment.

VANCOUVER, BC, Oct. 31, 2024 /PRNewswire/ - Aris Mining Corporation (Aris Mining or the Company) (TSX: ARIS) (NYSE-A: ARMN) today announces that it has completed its offering of US$450 million aggregate principal amount of 8.000% Senior Notes due 2029 (the "Notes"). Aris Mining intends to use the net proceeds from the offering of the Notes to fund the redemption of its outstanding 6.875% Senior Notes due in 2026 on November 20, 2024 and for working capital and general corporate purposes.

Neil Woodyer, CEO of Aris Mining, commented "We are pleased by the overwhelming investor demand for our Note offering, which reflects confidence in our growth strategy as well as favourable conditions across credit markets, emerging markets and gold. In response, we upsized the offering to US$450 million and priced the new Notes at 8.00%, significantly below the indicated market range of 8.25% to 8.50%. This strategic financing repays our existing US$300 million notes, extends the maturity of our long-term debt to October 31, 2029, while increasing our cash reserves during our transformational growth period with ongoing expansions at both Segovia and Marmato."

The offer and sale of the Notes will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"), and the Notes may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy the Notes, nor shall there be any offer or sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Aris Mining

Aris Mining is a gold producer in the Americas, currently operating two mines with expansions underway in Colombia. The Segovia Operations the Marmato and Upper Mine produced 226,000 ounces of gold in 2023. Aris Mining is targeting a production rate of approximately 500,000 ounces of gold per year in the second half of 2026, following a ramp-up period after the Segovia mill expansion scheduled for completion in Q1 2025 and the Marmato Lower Mine's first gold pour in late 2025. Aris Mining also operates the 51% owned Soto Norte joint venture, where studies are underway on a new, smaller scale development plan, with results expected in early 2025. In Guyana, Aris Mining is advancing Toroparu, a gold/copper project. Aris Mining intends to pursue acquisitions and other growth opportunities to unlock value through scale and diversification.

Aris Mining promotes the formalization of traditional miners into contract mining partners as this process enables all miners to operate in a legal, safe and responsible manner that protects them and the environment.

Forward-Looking Information

This news release contains "forward-looking information" or "forward-looking statements" within the meaning of Canadian and U.S. securities legislation. All statements included herein, other than statements of historical fact, including, without limitation, statements relating to the intended use of proceeds from this offering, project development plans and future performance, are forward-looking. Generally, the forward-looking information and forward looking statements can be identified by the use of forward looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", "will continue" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved."

Forward looking information and forward looking statements, while based on management's best estimates and assumptions, are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Aris Mining to be materially different from those expressed or implied by such forward-looking information or forward looking statements, including but not limited to those factors discussed in the section entitled "Risk Factors" in Aris Mining's Annual Information Form dated March 6, 2024 which is available on SEDAR+ at www.sedarplus.ca and in the Company's filings with the SEC at www.sec.gov. These factors should be considered carefully, and readers should not place undue reliance on the Company's forward-looking statements. The Company has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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SOURCE Aris Mining Corporation

FAQ

What is the size and interest rate of Aris Mining's (ARMN) new senior notes offering?

Aris Mining's new senior notes offering is US$450 million with an 8.000% interest rate, due in 2029.

When will Aris Mining (ARMN) redeem its existing 6.875% Senior Notes?

Aris Mining will redeem its existing 6.875% Senior Notes on November 20, 2024.

What will Aris Mining (ARMN) use the proceeds from the new notes offering for?

The proceeds will be used to redeem the outstanding 6.875% Senior Notes due in 2026 and for working capital and general corporate purposes.

Which projects will benefit from Aris Mining's (ARMN) increased cash reserves?

The increased cash reserves will support ongoing expansions at both Segovia and Marmato projects.