TSX-listed Aura Minerals has announced the acquisition of TSX-V-listed Bluestone Resources, gaining the Cerro Blanco gold project and the adjacent Mita geothermal project in Guatemala.

The cash-and-stock transaction values Bluestone at C$0.50 a share, which is a 40% premium to the volume-weighted average share price of the company for the 25 days ended October 24, representing a total enterprise value of up to $74.3-million.

Cerro Blanco is a near surface, high-grade gold deposit in Jutiapa, while the Mita project is an advanced-stage renewable-energy project licensed to produce up to 50 MW of power.

"Cerro Blanco stands as a world-class deposit that has encountered both social and institutional hurdles. We are confident that, over the next few years, by integrating it with Aura's 360 vision, we can refine our strategic approach to make Cerro Blanco another flagship project that exemplifies the utmost respect for social and environmental responsibilities while delivering value to all stakeholders,” said Aura CEO Rodrigo Barbosa.

Earlier this year, Bluestone received a notice from the Guatemalan Ministry of Environment (MARN) challenging the approval procedure that approved the surface mining method for Cerro Blanco. Bluestone has the view that the environmental permit amendment met and exceeded the terms of reference provided by the MARN, and it adhered to Guatemalan law. Aura intends, upon closing of the transaction, to evaluate the alternatives for a future potential development of Cerro Blanco.

“After a fulsome strategic review process, the acquisition by Aura provides the best outcome for Bluestone shareholders and to further advance the Cerro Blanco gold project and Mita geothermal project,” commented Bluestone CEO and chairperson of the board Peter Hemstead.

Aura owns a significant operation about 230 km from Cerro Blanco in Honduras, which provides the company with a deep understanding of the local environment, which is a crucial factor for the successful development of the Cerro Blanco orebody.