Aura Minerals (Nasdaq: AUGO) has secured a $200-million syndicated loan as the gold miner builds its Era Dorada project in Guatemala and works towards producing more than 600,000 gold-equivalent oz. a year.

The five-year loan carries interest at the Secured Overnight Financing Rate – which was 3.62% on Friday – plus 2.7% and includes a two-year grace period, Aura said. Citi and Itaú BBA acted as joint lead arrangers and bookrunners. Proceeds are earmarked for supplier payments and prepayment of production and selling costs, Aura said. The company didn’t specify how much, if any, would be used for its expansion projects.

“This transaction further diversifies our funding sources and supports the current phase of value creation for our shareholders,” President and CEO Rodrigo Barbosa said in a release. “Our approach to capital allocation remains balanced and consistent.”

The financing comes as Aura pursues a medium-term target of more than 600,000 gold-equivalent oz. annually, nearly double the 313,000 oz. it produced in the 12 months through June. The growth plan includes Era Dorada construction, capacity expansions at Almas and Borborema in Brazil and improvements across its six operating mines.

Growth build

Aura operates four gold mines in Brazil, the Minosa gold mine in Honduras and the Aranzazu copper-gold-silver mine in Mexico. It also owns development and exploration projects in Guatemala, Brazil and Colombia.

Era Dorada is on a two-year construction schedule, with operations expected to start in the first half of 2028. Aura hasn’t set a date for reaching its 600,000-oz. annual target, describing it instead as a goal for the “coming years.”

Aura approved construction of Era Dorada in April, lifting its 2026 capital spending guidance to $386 million-$463 million from $236 million-$278 million. Expansion spending accounts for $262 million to $314 million of the revised budget.

The Guatemala project carries an estimated $382-million capital cost. Its feasibility study outlined average production of about 111,000 gold-equivalent oz. annually during the first four years and an after-tax net present value of $1.34 billion at the study’s $3,177-per-oz. gold assumption.

Aura raised its longer-term production ambition to more than 600,000 oz. late last year after incorporating Era Dorada and further expansion opportunities into its portfolio. The company had previously targeted about 450,000 oz. annually.

Borborema entered commercial production in September 2025. Aura produced 158,000 gold-equivalent oz. in the first half of this year and maintained full-year guidance of 340,000-390,000 ounces.

Low leverage

Aura entered the expansion cycle with $248.3 million in cash on June 30 against $441.2 million of gross debt. Net debt stood at $168 million, or 0.21 times trailing adjusted earnings before interest, taxes, depreciation and amortization.

The company generated $175.1 million in recurring free cash flow during the first half, more than double the year-earlier amount. Second-quarter free cash flow was $80.2 million even as capital spending accelerated.

Aura shares fell 2.4% to $86.24 in New York on Friday, giving the company a market value of about $7.23 billion. They’ve traded in a range of $29.11 to $110.32 over the last 12 months. Aura left the TSX last year following its Nasdaq listing.