WSJ: Mubadala takes over Batista's Colombian gold assets

Abu Dhabi-based state investment fund Mubadala has assumed ownership of Colombian gold miner AUX, the Wall Street Journal reported.

AUX was part of the once grandiose EBX mining and energy group, which belongs to debt-laden Brazilian entrepreneur Eike Batista.

Batista borrowed US$2bn from Mubadala back in 2012. But EBX's demise on spiraling debt and unrealistic production targets led to its collapse and the former tycoon repaying the debt with assets.

"Mubadala has taken 100% ownership of AUX, marking a further significant step in the redemption process with EBX," Brian Lott, a spokesman for the Abu Dhabi fund, was quoted as saying by the paper.

Batista's former gold mining interests in Colombia were secured as part of his takeover of Ventana Gold, which owned the La Bodega project, in early 2011 in a transaction that valued the assets at around US$1.46bn.

A scoping study for La Bodega released in November 2010 estimated average annual production for the first six full years at 301,000oz gold, 1.4Moz silver and 6.9Mlb (3,130t) copper or 347,000oz of gold equivalent.

AUX later added properties near La Bodega by buying juniors Galway Resources and Calvista in 2012.