11:12 AM EDT, 05/23/2024 (MT Newswires) -- National Bank of Canada said Thursday reiterated its outperform rating on the shares of Aris Mining (ARIS.TO) and its $7.00 price target after the company agreed to acquire an additional 31% interest in the Soto Norte gold-copper project in Colombia, .

Under the terms, Aris will increase its project stake to 51% by issuing 21.75-million shares valued at $90 million to joint venture partner Mubadala.

National Bank ascribed a positive bias with the deal, saying the Aris secured a larger piece of a Tier 1 gold asset at a lower price than all prior benchmarks.

"Moreover, the deal adds depth to Aris' pipeline, removes overhang associated with prior buyback arrangements and improves M&A appeal partially offset by increased weighting in Colombia," the bank said.

Price: 5.76, Change: +0.09, Percent Change: +1.59