AURORA GOLD CORP company history: the story so far

History

Aurora Gold optioned Brazilian gold projects and found Molly at Sao Domingos, later bought into Colorado, then passed to Alltech control in 2012 with a refocus on Brazil.

2006-2007: Optioning Brazil and the Molly discovery

Aurora Gold set out in early 2006 to find gold in Brazil's Tapajos region through its Brazilian subsidiary. In February it signed options on two projects, Sao Domingos and Sao Joao, each allowing it to earn 100% by staged cash payments, and it could walk away at any time without owing later payments. Further options and agreements followed on Piranhas and Branca de Neve, and a 5,000-metre drilling contract was set for Sao Domingos.

The first drill hole, reported in July 2006, hit gold in three zones, though the company called it the weakest part of the structure. By October, with 2,484 metres drilled, it reported stronger results at a target called Molly, including 20 metres at 2.8 grams per tonne of gold, and said it believed Molly was a new discovery. It dropped the Ouro Mil option, cutting its holding to five properties.

In February 2007 a consultancy estimated an inferred resource (the lowest confidence category) at Molly of 1,428,000 tonnes at 3.94 g/t, about 180,000 ounces of gold. In July 2007 the company announced a placement of 4,000,000 shares at US$0.25, about US$1,000,000, half of the US$2,000,000 it had expected in April. Lars Pearl was by then signing as President and CEO, replacing Klaus Eckhof; no reason was given.

2008-2010: Partnering and a turn to Colorado

In May 2008 Aurora signed a joint venture in which Samba Minerals could earn up to 75% of Sao Joao and the adjoining Commandante Araras projects. Samba also set up an A$500,000 loan for Aurora to complete the study on Fofoca, as Molly was now called. The company's address had moved to Zug, Switzerland. The record then goes quiet until 2010, and the beats do not say what became of the Samba arrangement.

In June 2010 Aurora turned away from Brazil, buying a 50% interest in the Front Range Gold Project in Colorado. It paid $600,000 in cash and issued 5,000,000 shares to Global Minerals. The deal included a permitted mill, mining equipment and a half share of the Black Cloud claims. Aurora would be the operator and recover all its investment from production before sharing profit. No reserves were known.

2011-2014: Small raisings and Alltech takes control

Money stayed tight. In December 2011 Aurora settled $218,754.42 of debts, owed to parties including Ross Doyle, Coresco AG and Chairman Agustin Gomez de Segura, by issuing 10,937,721 shares at $0.02. It also raised $320,000 by selling 8,000,000 units at $0.04, each a share plus a warrant to buy another at $0.08 until June 20, 2013.

In September 2012 it agreed to sell 135,000,000 shares to Alltech Capital Limited for $5,000,000, far larger than the earlier raisings. The sale closed on October 5, 2012, at about US$0.037 a share. It gave Alltech roughly 54% of the company, which the filing called a change in control, and heavily diluted existing holders. The board grew from three to five with Alltech's nominees Vladimir Bernshtein and Andrey Ratsko.

As of October 11, 2012, the money was to be working capital for exploring Sao Domingo, expanding the Fofoca resource and testing the newly found Toucano gold occurrence, with a revised plan for bulk sampling, trenching and drilling. The announcement did not mention Front Range, so its status was unstated. The record after that date is quiet.

Written from the 14 story beats below (2006 to 11 Oct 2012), which come from the company's own announcements and filings.

Beat by beat

The events that changed the company's story, in plain English, each written against everything known about the company at the time. The dot shows whether it was good, bad or neutral for shareholders.

shares on issue market cap (log scale)

2012114m shares · US$6.8m market cap

11 Oct
The Alltech sale closed on October 5, 2012: 135,000,000 shares for $5,000,000 (about US$0.037 a share), roughly 54% of the shares outstanding, which the filing says is a change in control. Existing holders are heavily diluted. The board grew from three to five, adding Alltech's picks Vladimir Bernshtein (also Chief Business Development Director) and Andrey Ratsko. The company says the money is working capital for exploring the Sao Domingo property in Brazil, including the Fofoca resource and the newly found Toucano occurrence; the press release describes it as a refocus on Brazil, with no mention of Front Range.
business combination
114m shUS$6.8m
27 Sept
On September 21, 2012 Aurora agreed to sell 135,000,000 new shares to Alltech Capital Limited for $5,000,000, with closing expected by October 31, 2012. This is far larger than the 2011 raisings and would greatly dilute existing holders.
material agreement
114m shUS$6.8m

201191.0m shares · US$3.8m market cap

21 Dec
In December 2011 Aurora settled $218,754.42 of debts owed to Ross Doyle, Global Strategic Synergies Pty Ltd, Coresco AG and Agustin Gomez de Segura by issuing 10,937,721 shares at $0.02. It also sold 8,000,000 units at $0.04 for $320,000 gross to six non-US investors, each unit being one share plus a warrant to buy another share at $0.08 until June 20, 2013, with a commission of up to $25,600. Both steps issue new shares and dilute existing holders. The debt was owed to parties linked to management or the board (inference for Doyle and Global Strategic Synergies; Gomez de Segura is the Chairman per the April 2012 filing).
capital raising announcement
91.0m shUS$3.8m

2010

22 June
Aurora Gold completed the purchase of Global Minerals Ltd.'s interest in the Front Range Gold Project in Boulder County, Colorado, a new direction away from Brazil. On June 15, 2010 it signed the formal agreement, paid $600,000 cash (after $100,000 on the November 2009 letter agreement) and issued 5 million shares to Global Minerals. It gets a 50% participating interest in the joint venture, assets of Mount Royale Ventures including a permitted mill and mining equipment, and a 50% interest in the Black Cloud Mine Claim Group. Aurora will provide the capital to resume mining, be the operator, and recoup 100% of its investment from production before profit is shared. The share issue dilutes existing holders.
asset acquisition disposition

2008

14 May
Aurora Gold signed a joint venture with Samba Minerals Limited, an Australian company intending to list on the ASX, under which Samba can earn up to 75% of Sao Joao and the adjoining Commandante Araras projects. Samba has also set up a loan facility of A$500,000 for Aurora to complete the study on the Fofoca project (formerly called Molly). Aurora says it will focus on the western extension of Fofoca and the Bigode property. Terms of the loan and what Samba must spend to earn its interest are not given in the filing. The company's address is now in Zug, Switzerland, and it reports 4 properties and 6 applications.
material agreement

2007

5 July
Aurora Gold announced a private placement of 4,000,000 shares at US$0.25 per share, which works out to US$1,000,000 (our arithmetic), half of the US$2,000,000 it had said in April it expected to raise. Proceeds are to complete drilling at Molly and Sao Domingos, finish the first stage of drilling at Sao Joao and for general working capital. New shares dilute existing holders. The release is now signed by Lars Pearl as President, CEO and Director, replacing Klaus Eckhof in that role; the filing gives no explanation.
capital raising announcement
15 Feb
Aurora Gold announced a first inferred resource estimate for the Molly target at Sao Domingos: 1,428,000 tonnes at 3.94 g/t gold, about 180,000 ounces, prepared by consultancy Raylar Pty Ltd under the JORC reporting code and based on the first 10 drill holes. 'Inferred' is the lowest confidence category; the company plans to drill closer together during 2007 to raise confidence and is awaiting 7 more holes. Its stated intentions to fast-track Molly to feasibility and production 'in the near future' are the company's own aims, not results.
resource reserve update

2006

19 Oct
Aurora Gold reported first-pass drill results from Sao Domingos, with 2,484m drilled so far and about 70% of results received. Best intercepts were 20m at 2.8 g/t gold at the Molly target, 6m at 7.3 g/t at Molly, 4m at 3.54 g/t at Atacadao and 12.6m at 1.70 g/t at Esmeril; the company says it believes Molly is a new discovery. This follows the first-hole results of July, and Molly's copper grades are still being re-assayed. The company also decided not to exercise its option on Ouro Mil, so that property is dropped. It now describes 5 properties totalling 44,469 hectares, down from the eight it described in June (the filing does not list which five).
drilling result
17 July
Aurora Gold reported its first drill hole at the Attacadau target on Sao Domingos, which hit gold in three zones: 6m at 1.31 g/t from 29m, 2m at 1.09 g/t from 57m and 8m at 1.19 g/t from 73m. This ends the wait for first drill results at Sao Domingos (drilling started around May 27). The company itself calls this the weakest part of the structure and plans to drill further along strike. It also reported a soil anomaly at Santa Isabel (400m grading over 2 g/t, other assays over 1 g/t) and plans to bring drilling equipment there, so Santa Isabel drilling, expected since March, had still not started.
drilling progress report
12 Apr
Aurora Gold's Brazilian subsidiary says it has secured the mineral rights over the Branca de Neve property, next to Piranhas (combined holding 24,210 hectares), and reports rock chips of 32.3 to 208 g/t gold. The text describes an MOU/option: payments in Brazilian reais totalling R$675,000 between April 12, 2006 and October 12, 2008 (last R$500,000), a 0.75% royalty buyable for R$500,000, and the right to terminate at any time without owing later payments. The filing's wording is mixed ('secured the mineral rights' versus an MOU still to become an option), so the exact status of the rights is unclear from the text. These are surface samples, not drilling.
drilling result
5 Apr
Aurora Gold says it has negotiated a 5,000-metre drilling contract (with an option to extend) on Sao Domingos, with drilling scheduled to start in late April 2006. This is the first drilling contract in the filings and follows the earlier Sao Domingos rock-chip results (up to 42.56 g/t gold); the filing gives no contract cost or contractor name. The earlier plan was for drilling to begin at Santa Isabel in late March; this filing does not mention Santa Isabel.
drilling result
23 Mar
Aurora Gold's Brazilian subsidiary signed a non-binding-style Memorandum of Understanding giving it a 180-day review period on the Piranhas property in the Tapajos region, about 50 km NE of Sao Domingos. If it proceeds, it would sign an option to earn 100% through payments totalling USD $2,000,000 (June 30, 2006 USD 30k; July 21, 2006 USD 70k; July 2007 120k; July 2008 180k; July 21, 2009 USD 1.6M), with a 1.5% royalty to the vendor; it can terminate at any time without owing later payments. The company's view that the property could hold large gold bodies is its own opinion; this adds a third Tapajos property to the option pipeline alongside Sao Domingos and Sao Joao.
material agreement
15 Feb
Aurora Gold's wholly owned Brazilian subsidiary signed an option agreement on the Sao Domingos gold project in Para, Brazil, and has started early exploration with four target areas outlined. To earn 100% it must make cash payments totalling USD $1,026,000 between January 30, 2006 and December 30, 2008 (the last being USD $675,000), and the vendor keeps a 2.0% royalty that can be bought back for USD $500,000; the company can end the option at any time and owe no further payments.
material agreement
15 Feb
Aurora Gold's Brazilian subsidiary signed a second option agreement, on the Sao Joao gold project, about 20km west of Sao Domingos, and has started early exploration. To earn 100% it must pay USD $1,435,000 in instalments from April 12, 2006 to September 12, 2009 (the last being USD $1,250,000), with a 1.5% royalty to the vendor that can be bought back for USD $1,000,000; the company can terminate at any time without owing later payments.
material agreement