Neil Woodyer, CEO of Aris Mining, commented on the new plan: “The Soto Norte PFS outlines a project that balances scale, profitability, environmental stewardship, and community input. Our plan dedicates 750 tpd—more than 20% of total capacity—for material mined by local community groups, replacing informal mills that pollute waterways with safe, licensed processing. All mine water will be collected, treated, and safely returned, safeguarding the Bucaramanga and regional water supplies and improving water quality in the local community mining areas. The PFS results highlight Soto Norte’s ability to deliver significant long-term value for shareholders and our community and government partners, while adhering to the highest standards of safety, water protection, and environmental management. With the PFS complete, we are completing environmental studies and preparing to apply for an environmental license in early 2026. Soto Norte stands out as one of the most attractive gold projects in the Americas.”

The PFS, based on a gold price of $2,600 per ounce, presents a project with a 22-year initial mine life and a processing capacity of 3,500 tpd. The study excludes any economic contribution from the 750 tpd dedicated to local community miners.

Financial Metrics: The after-tax net present value (NPV) at a 5% discount rate is estimated at $2.7 billion, with an internal rate of return (IRR) of 35.4%. The payback period from the start of operations is projected to be 2.3 years.

Costs: Initial capital is estimated at $625 million, including pre-production costs, VAT, and contingency. The projected life-of-mine cash costs are $345 per ounce of gold, with all-in-sustaining costs (AISC) of $534 per ounce.

Production: The study estimates average annual gold production of 263,000 ounces (koz) during the first ten years, with a total of 4.3 million ounces (Moz) of gold produced in concentrates over the mine’s life. It also includes significant by-product credits from silver and copper.

Resources and Reserves: The project’s proven and probable mineral reserves are 20.3 million tons at a grade of 7.00 g/t gold, containing 4.6 Moz gold. Measured and indicated mineral resources stand at 39.0 million tonnes at 5.55 g/t gold, containing 7.0 Moz gold.

The project’s design focuses on environmental and social sustainability, particularly in the municipalities of California, Suratá, and Matanza in Santander, a department of Colombia. Key features include:

• Community Processing: A portion of the plant’s capacity will be reserved to process material from local miners, providing a regulated alternative that avoids the use of mercury.
• Water Management: The plan is designed to protect local watercourses by managing clean and contact water separately. A recycling system allows for 96.5% water reuse, and the facility will not use cyanide or mercury.
• Local Employment: Peak construction is expected to create approximately 2,300 jobs, with long-term operations sustaining about 675 direct employees.
• Infrastructure: A rope conveyor will transport ore to the plant, reducing truck traffic and environmental footprint.

A complete Technical Report compliant with National Instrument 43-101 has been filed on SEDAR+ and with the US Securities and Exchange Commission (SEC) on EDGAR.

Above photo: Commissioning of the second ball mill at Segovia. Photo credit: Aris Mining/X.

The $130 million USD equity investment includes a previously disclosed secured convertible note issuance of $40 million USD from Hoche Partners Pharma Holding S.A. in mid-October 2024, intended to provide Procaps with liquidity during a period of financial distress. This note has since been converted into ordinary shares. The remaining $90 million USD was raised through a private placement of ordinary shares. The investor group comprises Chemo Project S.A., Becaril S.A., Flying Fish Ventures L.P., Saint Thomas Commercial S.A., Santana S.A., Hoche Partners Pharma Holding S.A., and other undisclosed investors. This collective now holds approximately 90% of Procaps’ shares.

The involvement of Hoche Partners in Procaps’ financial restructuring follows a period of contention between the Chilean-origin investment firm and the company’s previous management. In November 2024, Procaps received notification from Nasdaq regarding the suspension of its stock listing after failing to file its Form 20-F for the fiscal year ending December 31, 2023, with the US Securities and Exchange Commission (SEC).

This situation arose after Hoche Partners Pharma Holding initiated legal action through the US law firm Gibbons P.C. due to identified irregularities in the company’s accounting. Hoche Partners had proposed a change in management to address the delays in financial reporting.

According to a letter submitted to the SEC by Gibbons P.C. on behalf of Hoche Partners in late October, the investment firm had offered a $40 million USD liquidity injection to Procaps on October 20, 2024. The proposal outlined an immediate availability of half the funds, with the remaining half to be raised and invested before the end of the year.

Gibbons P.C. stated that this offer was contingent upon changes in corporate governance and voting rights affecting the majority shareholders while allowing them to participate in capital increases. Another condition involved the majority shareholders reimbursing the company for expenses related to the accounting investigation. However, Procaps’ management reportedly rejected this proposal and presented counteroffers deemed “unacceptable” by Hoche Partners. Consequently, Hoche Partners withdrew its offer on October 28, 2024.

Despite the withdrawal, Hoche Partners now intends to play a significant role in guiding Procaps’ transformation and supporting its long-term strategy. The new shareholder base, which includes investors with experience in the healthcare and pharmaceutical sectors, is expected to actively participate in the company’s turnaround efforts.

Alejandro Weinstein, Chairman of the Board and representative of Hoche Partners, stated, “With this strong and committed investor group that trusts the future of Procaps, the company is now in a position to stabilize, rebuild trust, and create long-term value through operational discipline and a renewed strategic focus.”

Simultaneously, Procaps finalized a comprehensive restructuring of approximately $209 million USD in debt that was previously under forbearance. The agreement with key lenders includes:

• Extension of debt maturities and revised payment schedules to improve near- and mid-term cash flow.
• Reprofiling of financial obligations to align with the company’s operational turnaround timeline.
• Adjustment of financial covenants to better reflect current operations and the strategic plan.
• Preservation of liquid assets to support ongoing operations and strategic initiatives.
• As part of the debt restructuring, certain lenders have agreed to convert a portion of their debt holdings into equity in the company, indicating an alignment of interests with Procaps’ long-term prospects.

Interim Co-Chief Executive Officer Melissa Angelini commented, “This financial reset gives us the breathing room and flexibility to focus on what matters: rebuilding the core of the business and creating sustainable value.”

These financial maneuvers follow a challenging fiscal year 2024 for Procaps. The company’s current focus is on executing a turnaround strategy that includes addressing the findings of a previously disclosed internal investigation related to internal controls, governance, and financial reporting. Procaps is also in the process of finalizing the restatement of prior-period financial statements and intends to release its audited 2023 and 2024 financials as soon as practicable. The delay in filing its Form 20-F was a key factor leading to the Nasdaq delisting notification.

Additional elements of the turnaround strategy include implementing structural cost-efficiency measures, centralizing decision-making, and prioritizing margin expansion through operational discipline and business simplification.

In a significant organizational shift, Procaps has relocated its corporate headquarters to Bogotá, Colombia. This move aims to centralize strategic, financial, and executive decision-making closer to the company’s primary markets. However, the company’s operational footprint in Barranquilla, where manufacturing plants, product development, and other key operational teams are based, will remain unchanged.

The headquarters relocation is part of a broader internal reorganization that involves the centralization of finance, financial planning and analysis (FP&A), compliance, legal, and information technology (IT) functions. The company is also implementing leadership transitions to foster a performance-oriented management culture, enhancing governance structures, and strengthening internal controls, reporting mechanisms, and operating discipline.

To enhance accountability and improve commercial performance, Procaps is reorganizing its operations into five regional clusters: Colombia, Brazil (B2B), United States (B2B), Andinos (comprising Peru, Ecuador, and Bolivia), and CENAM (including Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, Panama, and the Dominican Republic).

Furthermore, Procaps is actively pursuing strategic alternatives for non-core assets, with several discussions reportedly in advanced stages. The potential proceeds from these sales are intended for debt reduction and reinvestment in high-margin, strategic assets and operations.

With a restructured capital base and new leadership in place, Procaps states its focus is on restoring profitability through operational efficiency and cost control, reinforcing governance and transparency, delivering on its remediation plan, divesting non-core assets, and investing in innovation and commercial growth, particularly in prescription drugs and expanding its contract development and manufacturing organization (CDMO) global footprint. The company faces the ongoing task of addressing its delayed financial filings to regain compliance with Nasdaq listing requirements.

Greenberg Traurig, LLP advised Procaps as lead transaction and US counsel, Arendt & Medernach S.A. as Luxembourg counsel, and Philippi Prietocarrizosa Ferrero DU & Uria as Colombian and Peruvian counsel. FTI Consulting served as the company’s exclusive financial advisor.

Photo credit: Procaps Group website.

The company reported an 8% increase in total gold production compared to the 50,767 ounces produced in Q1 2024. Aris Mining stated that this production reflects operational momentum as it enters 2025. The commissioning of the expanded Segovia processing facility remains on track for the second quarter of 2025, with the company anticipating additional production growth in subsequent quarters.

Aris Mining has set its full-year 2025 production guidance between 230,000 and 275,000 ounces of gold. This guidance includes an expected production range of 210,000 to 250,000 ounces from Segovia and 20,000 to 25,000 ounces from the Marmato Upper Mine. The company noted that the Q1 2025 production figures provided in the release are approximate and may differ from the final results to be included in its 2025 interim financial statements and Management’s Discussion and Analysis (MD&A), which are expected to be released in early May 2025 and filed on SEDAR+ in Canada and with the US Securities and Exchange Commission (SEC) via EDGAR.

Neil Woodyer, CEO of Aris Mining, commented on the company’s performance, stating, “Q1 production came in slightly ahead of our budget target, reflecting a solid operational start to the year. With the expanded Segovia processing facility set to be commissioned this quarter, we are well on track to deliver on our full-year production guidance of 230,000 to 275,000 oz.”

Segovia Operations – Q1 2025 Operating Information:

Marmato Upper Mine – Q1 2025 Operating Information:

Founded in September 2022, Aris Mining is a gold mining company focused on Latin America. The company’s strategy involves current gold production and cash flow generation, coupled with growth through expansions of its operating assets and exploration and development projects. Aris Mining operates two underground gold mines in Colombia: the Segovia Operations and the Marmato Upper Mine, which together produced 210,955 ounces of gold in 2024.

The company is currently undertaking expansions at its Segovia mill, which is expected to ramp up production in the second half of 2025, and the new Marmato Lower Mine, which is anticipated to ramp up production in the second half of 2026. These expansions aim to increase Aris Mining’s annual production rate to over 500,000 ounces of gold.

Additionally, Aris Mining holds a 51% interest in the Soto Norte joint venture in Colombia. Studies are underway for a smaller-scale development plan, with results expected in mid-2025. In Guyana, the company owns the Toroparu gold/copper project, diversifying its asset portfolio.

Aris Mining also stated its intent to pursue partnerships within Colombia’s small-scale mining sector and to consider acquisitions and other growth opportunities.

Photo credit: Aris Mining.