Aguia Resources Launches Underground Mining and Secures $1.5m for Growth

Operational Milestones at Santa Barbara

Aguia Resources Limited (ASX:AGR) has marked significant progress in its December 2024 quarter activities, notably commencing underground mining at its Santa Barbara gold project in Colombia. The company’s wholly owned subsidiary, Minera La Fortuna SAS, received all necessary approvals to operate the underground workings and processing facility, enabling mining operations to begin in early December. Processing of exploration development material has also commenced, culminating in the first successful gold and silver pour reported shortly after the quarter ended.

The Santa Barbara project is undergoing a rapid and cost-effective rehabilitation, with capital outlays kept under $2 million. The operation is scaling from an initial 30 tonnes per day (tpd) pilot plant capacity towards a targeted 50 tpd by April/May 2025. Key upgrades include the installation of a new thickener to improve ore processing efficiency and the commissioning of additional agitator tanks to support continuous operation. A new three-stage crushing circuit is also being installed to enhance throughput.

Legal Victory Clears Path for Brazilian Phosphate Project

In Brazil, Aguia secured a favorable ruling from the Federal Court Trial Court in Rio Grande do Sul, which denied the Federal Public Prosecutors' Office's request to annul the environmental license granted for the Fosfato Três Estradas phosphate project. This decision removes a significant regulatory hurdle, allowing Aguia to advance the project under existing installation and environmental licenses. The company anticipates obtaining the operational license within 3 to 6 months, paving the way for commercial mining operations.

Complementing this progress, Aguia’s Brazilian subsidiary, Águia Fertilizantes S.A., signed a non-binding Memorandum of Understanding with Dagoberto Barcelos S.A. to lease an existing phosphate processing facility near Cacapava do Sul. The facility, which has historically operated at approximately 100,000 tonnes per annum (tpa), could potentially scale up to 300,000 tpa with the addition of a second drying unit. Aguia plans to commence ore processing at this site by mid-2025, accelerating its entry into the domestic phosphate market, which currently relies entirely on imports.

Capital Raising and Financial Position

To support these developments, Aguia completed a placement of approximately 42 million new shares at $0.036 each, raising $1.5 million before costs. These funds are earmarked for further development of the Santa Barbara gold project, advancing phosphate assets in Brazil, and general working capital. The company ended the quarter with a cash balance of $2.22 million, reflecting ongoing investment in operational ramp-up and infrastructure enhancements.

Operating expenditure for the quarter was $1.31 million, with exploration and evaluation activities accounting for $793,000 and property, plant, and equipment acquisitions totaling $613,000. Payments to related parties, including directors’ fees and consulting fees, were disclosed in line with governance standards.

Outlook and Strategic Focus

Executive Chairman Warwick Grigor highlighted the quarter’s achievements as a pivotal step in establishing Aguia as a gold producer and advancing its phosphate portfolio. The company is focused on scaling Santa Barbara’s processing capacity to 50 tpd and initiating its maiden exploration and development drilling program. In Brazil, leveraging existing processing infrastructure is expected to reduce capital expenditure and unlock value from Aguia’s extensive phosphate resources.

With regulatory clarity secured and operational momentum building, Aguia is positioning itself to capitalize on both gold and phosphate markets, supported by a committed shareholder base and strategic partnerships.