Lima, Peru – [Date of Publication] – Alpayana, a prominent Peruvian mining group with a rich four-decade history across Peru and Mexico, has officially announced a strategic expansion into the Brazilian market. The company has made a substantial investment of US$32 million in Cabral Gold, a Canadian explorer developing the Cuiú Cuiú gold project in the state of Pará, marking a significant step in Alpayana’s international growth strategy. This move not only broadens Alpayana’s geographical footprint but also reinforces its commitment to expanding its gold portfolio in promising South American territories.
The investment, finalized on August 24th, involved Alpayana subscribing to a private placement by Cabral Gold, acquiring 34.58 million units at CAD$1.30 per unit. Each unit comprises one common share and half a warrant, granting Alpayana the potential to increase its stake further. This strategic maneuver positions Alpayana as a key stakeholder in Cabral Gold, with an initial ownership of 9.99% of the company’s shares. Should Alpayana exercise all its warrants, its ownership could rise to an impressive 14.27%. The acquired shares are subject to a regulatory hold period, preventing resale until December 25, 2026, in accordance with Canadian securities regulations.
This foray into Brazil represents Alpayana’s ambition to tap into one of South America’s most dynamic mining frontiers, aligning with its overarching strategy of diversification and regional consolidation. The company’s long-standing operational experience in Peru and Mexico provides a solid foundation for navigating the complexities and opportunities presented by the Brazilian mining sector.
Cuiú Cuiú: Alpayana’s Strategic Gold Bet in the Heart of Brazil
Alpayana’s strategic investment is centered on the Cuiú Cuiú gold project, situated in the Tapajós region of Brazil. This area is renowned as one of the country’s most significant gold-bearing territories, boasting a rich geological endowment. Cabral Gold, the project’s developer, has already delineated substantial gold resources. The project currently hosts approximately 666,000 ounces of gold classified under the highest confidence category, with an additional 525,700 ounces identified as preliminary resources.
The development plan for Cuiú Cuiú is meticulously structured into distinct phases, designed to maximize resource extraction and operational efficiency. The initial phase will focus on exploiting oxide deposits through a heap leaching system. This approach is projected to achieve commercial production by the fourth quarter of 2026. Notably, Cabral Gold has indicated that it anticipates its first gold production in September of the current year, signaling a near-term operational milestone. Following the successful implementation of the oxide phase, a larger-scale second stage will commence, targeting the extraction of harder rock resources, thereby unlocking the full potential of the deposit.
Alpayana’s investment is not merely financial; it carries significant strategic weight. By maintaining at least a 9.99% equity stake in Cabral Gold, Alpayana secures the right to appoint a director to the company’s board, or alternatively, a board observer. This governance provision ensures Alpayana’s active participation and influence in the strategic direction of the Cuiú Cuiú project, allowing them to leverage their extensive mining expertise.
Voices from the Deal: Strategic Vision and Synergies
The announcement has been met with optimism from both Alpayana and Cabral Gold, highlighting the synergistic potential of this partnership.
Alan Carter, President and CEO of Cabral Gold, expressed his enthusiasm, stating, "Alpayana’s investment represents a solid endorsement of the Cuiú Cuiú project. With six mines currently in operation in Peru and Mexico, Alpayana brings considerable experience that will be instrumental in helping us unlock the untapped potential within the district." This sentiment underscores the value Alpayana’s operational acumen brings to Cabral Gold’s exploration and development efforts.
Alejandro Gubbins, President of Alpayana, articulated the Peruvian company’s perspective: "This investment reflects Alpayana’s confidence in the Cabral team and the geological potential of the Cuiú Cuiú district and the Tapajós region. As a privately held group with four decades of continuous operations in Latin America, we are proud to extend our focus on responsible, long-term mining into Brazil’s newest and most exciting gold district." Gubbins’ statement emphasizes Alpayana’s long-term vision and its commitment to sustainable mining practices as it expands its international presence.
Alpayana Accelerates International Expansion: A Multi-Pronged Growth Strategy
The venture into Brazil is a key component of Alpayana’s accelerated international expansion strategy, which has seen significant activity in recent months. In July, Alpayana made a substantial investment of US$98.4 million in Magna Mining, marking its entry into the Canadian market and securing a significant stake of approximately 19.9% in the company. This earlier move demonstrated Alpayana’s proactive approach to diversifying its geographical exposure and gaining access to new resource opportunities.
With the acquisition of a stake in Cabral Gold, Alpayana is further broadening its international exposure, specifically within the gold sector, and adding Brazil to its growing list of operational markets. This strategic diversification not only mitigates geographical risk but also allows Alpayana to capitalize on the varied geological prospects and market dynamics present in different regions.
The timing of Alpayana’s entry into Brazil is particularly opportune, coinciding with critical operational advancements at the Cuiú Cuiú project. In mid-August, Cabral Gold secured its operating license for the mine and successfully completed the construction of its ADR (Adsorption-Desorption-Recovery) processing plant. The plant’s commissioning is proceeding smoothly, with the timeline firmly set for the commencement of gold production in September. This imminent production start offers a tangible pathway to value realization for Alpayana’s investment.
Continued Commitment to Peru: Domestic Exploration Remains a Priority
While Alpayana is actively pursuing international growth, its dedication to its domestic market in Peru remains unwavering. The company continues to make significant strides in its Peruvian operations through its subsidiary, Sobreandes. Recently, Sobreandes submitted the Environmental Impact Assessment (EIA) for the Venturosa Central exploration project to the Ministry of Energy and Mines.
The Venturosa Central project is located in the Carampoma district, Huarochirí province, within the Lima region. This initiative represents a substantial investment of S/ 11.2 million, equivalent to approximately US$3.31 million. The exploration program is designed to include the development of 10 drill pads and the execution of 15 boreholes, totaling 11,610 linear meters of drilling. The primary objectives of this exploration effort are to identify and delineate deposits of zinc, lead, silver, and copper, further strengthening Alpayana’s mineral resource base in Peru.
Alpayana’s dual strategy of international expansion and continued domestic investment showcases a well-defined and ambitious growth plan. By geographically diversifying its portfolio through investments in Canada and Brazil, while simultaneously reinforcing its commitment to the rich mining potential of Peru, Alpayana is not merely spreading its resources thin. Instead, the company is meticulously building a robust regional presence, a feat that few Peruvian mining companies have historically achieved.
With operations spanning six mines across Peru and Mexico and accumulating over 39 years of operational experience, Alpayana has clearly recognized that the future of the mining industry hinges on strategic diversification and vertical integration. This forward-looking approach positions Alpayana as a significant player in the evolving global mining landscape, poised for sustained growth and success.
