Brexia Gold Plata Peru becomes a shareholder of Auplata: executed at a pivotal point for both companies, this alliance is the cornerstone of an ambitious project
Brexia Gold Plata Peru (BGPP) is one of the "junior mining companies" in Peru's mining market. The company explores and exploits multimetal deposits (zinc, lead, silver, gold and copper) in one of the most prolific mining belts in South America (Antapaccay, Constancia, Las Bambas), across a mining portfolio spanning 200 km². Its production at the El Santo mine site is delivering robust cash flow, giving it the resources to drive its ambition to pursue promising exploration projects.
The majority shareholder, BGPP Brexia International, is administered by one of the biggest investment funds in Latin America, Tribeca Asset Management. This fund manager has extensive experience in managing specialized companies, especially in the valuation of natural resource assets such as, among others, the success of Petrolatina Energy Plc, sold in 2016 to Canadian Gran Tierra Energy.
The alliance between BGPP and Auplata (Euronext Growth - FR0010397760 - ALAUP), the largest exchange-listed French gold producer, was signed and sealed when BGPP bought into a capital increase by Auplata, - paying €0,5M cash on a 1-for-1 basis at €0.14 per share for 3 571 428 new shares and will be pursued when BGPP enter into a new capital increase by Auplata, at par value, which will result from the capital reduction decided by the board and to be voted by the extraordinary general meeting to be held on 2018 July 16th and for which the number of shares will depend on the par value - existing shareholders' preferential rights waived to the benefit of BGPP.
As a result of these two capital increase (€0.5M and €4.5M), the composition of the Board of Directors of Auplata will change, with the addition of two new members bringing additional expertise:
- The company BGPP, represented by Luc Gérard
(ICHEC, Brussels Business School, Belgium - MBA IMD Lausanne, Switzerland - MD Integrated National Defense, Colombian War School, Bogotá Colombia ; Chairman and founder of Tribeca Asset Management)
- Mr. Alex Van Hoeken, independent director
(Colorado School of Mining – B.Sc. Mining Engineering and Graduate Certificates in Mineral Economics & Public Affairs – and Chartered Engineer – Engineering Council, UK).
Didier Tamagno, Chairman & CEO of Auplata says:
"This transaction is an extremely interesting opportunity for Auplata. BGPP has demonstrated rigorous cost control and production control at its El Santo plant, and has massive exploration expertise. This alliance comes just at the right time, at a point when the Dieu Merci cyanidation plant is about to be delivered. "
Luc Gerard, Chairman of Tribeca Asset Management, says:
"We are delighted by this alliance with Auplata which will extend our presence in one of the main gold producing regions, the "Guiana Belt". We are taking a stake in Auplata to consolidate our activities and combine our rigorous management with Auplata's mining potential. We can get our cyanidation plant up and running quickly, which is in its final phase, and launch an exploration program to reveal the potential at Couriège, Yaou and Dieu Merci, and others."
Based in French Guiana, Auplata is the largest French, stock-market listed gold producer. The Company has more than 700 sq km of mining permits and titles in French Guyana. Auplata operates an innovative industrial and financial strategy, aimed at developing and exploiting Guianese gold resources with the strong involvement of local players. The Company's objective is to offer sustainable exploitation for the Guianese mining industry. Since June 2015, Auplata is a shareholder in the Côte d'Ivoire mining company OMCI, which owns two mining projects in Côte d'Ivoire.
Auplata's share are listed on the Euronext Growth market in Paris (Euronext). ISIN: FR0010397760 – ALAUP; ICB: 1777 – Gold Mining.
For more information about Auplata, go to www.auplata.fr.