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

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Aris Mining (TSX: ARIS) (NYSE-A: ARMN) has announced the pricing of US$450 million in 8.000% Senior Notes due 2029. The offering is expected to close around October 31, 2024. The company plans to use the proceeds to redeem its outstanding 6.875% Senior Notes due 2026 and for working capital purposes. The Notes will be offered to qualified institutional buyers in the United States under Rule 144A and to non-U.S. persons under Regulation S. In Canada, the Notes will be offered through private placement.

Aris Mining (TSX: ARIS) (NYSE-A: ARMN) ha annunciato la fissazione del prezzo di 450 milioni di dollari statunitensi in Obbligazioni Senior 8.000% con scadenza nel 2029. L'offerta dovrebbe concludersi attorno al 31 ottobre 2024. L'azienda prevede di utilizzare i proventi per riscattare le proprie Obbligazioni Senior 6.875% in scadenza nel 2026 e per scopi di capitale circolante. Le Obbligazioni saranno offerte a compratori istituzionali qualificati negli Stati Uniti sotto la Regola 144A e a non residenti statunitensi secondo il Regolamento S. In Canada, le Obbligazioni saranno offerte tramite collocamento privato.

Aris Mining (TSX: ARIS) (NYSE-A: ARMN) ha anunciado el precio de 450 millones de dólares estadounidenses en Notas Senior del 8.000% con vencimiento en 2029. Se espera que la oferta se cierre alrededor del 31 de octubre de 2024. La empresa planea utilizar los ingresos para redimir sus Notas Senior del 6.875% que vencen en 2026 y para fines de capital de trabajo. Las Notas se ofrecerán a compradores institucionales calificados en Estados Unidos bajo la Regla 144A y a personas no estadounidenses bajo la Regulación S. En Canadá, las Notas se ofrecerán a través de colocaciones privadas.

아리스 마이닝 (TSX: ARIS) (NYSE-A: ARMN)은 4억 5천만 달러 규모의 8.000% 만기 2029년의 선순위 채권 가격을 발표했습니다. 이번 공모는 2024년 10월 31일경에 마감될 것으로 예상됩니다. 회사는 모집 자금을 사용하여 2026년 만기 6.875% 선순위 채권을 상환하고 운영 자본 용도로 사용할 계획입니다. 이 채권은 미국에서 144A 규정에 따라 자격을 갖춘 기관 투자자에게 제공되며, 비 미국인에게는 S 규정에 따라 제공됩니다. 캐나다에서는 이 채권이 비공식적으로 배포될 것입니다.

Aris Mining (TSX: ARIS) (NYSE-A: ARMN) a annoncé la fixation du prix de 450 millions de dollars américains en Obligations Senior à 8,000% venant à échéance en 2029. L'offre devrait se clôturer aux alentours du 31 octobre 2024. La société prévoit d'utiliser les fonds pour racheter ses Obligations Senior à 6,875% venant à échéance en 2026 et pour des besoins de fonds de roulement. Les Obligations seront proposées à des investisseurs institutionnels qualifiés aux États-Unis dans le cadre de la Règle 144A et à des non-résidents américains selon la Réglementation S. Au Canada, les Obligations seront proposées par le biais d'un placement privé.

Aris Mining (TSX: ARIS) (NYSE-A: ARMN) hat die Preisfestsetzung von 450 Millionen US-Dollar für 8,000% Senior Notes mit Fälligkeit 2029 bekannt gegeben. Es wird erwartet, dass das Angebot rund um den 31. Oktober 2024 abgeschlossen wird. Das Unternehmen plant, die Erlöse zur Rückzahlung seiner ausstehenden 6,875% Senior Notes mit Fälligkeit 2026 und für Betriebsbedarfe zu verwenden. Die Anleihen werden qualifizierten institutionellen Käufern in den Vereinigten Staaten gemäß Regel 144A und nicht-US-Personen gemäß Regulation S angeboten. In Kanada werden die Anleihen über eine Privatplatzierung angeboten.

Positive
  • Successful pricing of US$450 million Senior Notes offering
  • Proceeds will strengthen working capital position
Negative
  • Higher interest rate on new notes (8.000%) compared to existing notes (6.875%)
  • Increased debt service costs will impact future cash flows

Insights

This refinancing marks a significant shift in Aris Mining's debt structure, though at a higher cost. The new $450 million notes carrying an 8.000% interest rate represent a notable 1.125% increase from the current 6.875% 2026 notes. This higher rate reflects current market conditions and will increase annual interest expenses by approximately $5.1 million.

The extended maturity to 2029 provides improved financial flexibility and debt timeline management. However, the increased interest burden could impact free cash flow and operating margins. The private placement structure, targeting qualified institutional buyers, suggests strong institutional interest despite the higher yield, though retail investor access will be due to regulatory restrictions.

VANCOUVER, BC, Oct. 24, 2024 /PRNewswire/ - Aris Mining Corporation (Aris Mining or the Company) (TSX: ARIS) (NYSE-A: ARMN) today announces the pricing of its offering of US$450 million aggregate principal amount of 8.000% Senior Notes due 2029 (the "Notes"). The offering is expected to close on or about October 31, 2024. 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 2026 (the "2026 Notes") and for working capital and general corporate purposes.

Pursuant to the terms of the indenture governing the 2026 Notes, the Company has issued a conditional notice of redemption to redeem the outstanding 2026 Notes, which redemption will be conditional upon the successful completion of the offering of the Notes.

The Notes will be offered and sold in the United States only to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the United States Securities Act of 1933, as amended (the "Securities Act"), and to non-U.S. persons outside the United States in reliance on Regulation S under the Securities Act. The Notes will be offered and sold in Canada on a private placement basis pursuant to certain prospectus exemptions.

The offer and sale of the Notes will not be registered under 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 and the Marmato 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 completion and timing of this offering and the intended use of proceeds from this offering, the Company's plans to redeem the 2026 Notes, 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 interest rate of Aris Mining's (ARMN) new Senior Notes offering?

Aris Mining's new Senior Notes offering has an interest rate of 8.000% and is due in 2029.

How much is Aris Mining's (ARMN) Senior Notes offering worth?

Aris Mining's Senior Notes offering is worth US$450 million in aggregate principal amount.

When will Aris Mining's (ARMN) new Senior Notes offering close?

The Senior Notes offering is expected to close on or about October 31, 2024.

What will Aris Mining (ARMN) use the proceeds from the Senior Notes for?

Aris Mining will use the proceeds to redeem its outstanding 6.875% Senior Notes due 2026 and for working capital and general corporate purposes.

Aris Mining Corporation

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