Canada approves Pan American’s sale of Peru gold mine to Zijin
Canada has approved Pan American Silver’s (TSX, NYSE: PAAS) sale of its La Arena open-pit mine and project in Peru to Jinteng Mining, a subsidiary of China’s Zijin Mining Group.The approval, granted under the Investment Canada Act, includes a joint commitment by Pan American and Zijin to establish an offtake agreement for the La Arena II project. This deal will allow the Vancouver-based company to secure 60% of the future copper concentrate produced from La Arena II on commercial terms, with the intent to supply the North American markets once commercial production begins.Upon closing, Zijin will pay $245 million in cash and grant Pan American a 1.5% life-of-mine gold net smelter return royalty from the La Arena II project. Additionally, once commercial production commences, Zijin will make a further contingent cash payment of $50 million.The La Arena property is located in the La Libertad province of Peru. It comprises the La Arena gold mine and the La Arena II project, which is in advanced exploration. The open-pit mine has been in operation since 2011.Since acquiring the mine from Tahoe Resources in 2019, Pan American said it has added 535,521 oz. of gold through exploration and extended the mine life from 2021 to 2026, with the potential for further extension.Pan American Silver has silver and gold mines across the Americas, with active operations in Canada, Mexico, Peru, Brazil, Bolivia, Chile and Argentina. The company also owns the Escobal mine in Guatemala, which is closed pending the completion of an ongoing consultation for a possible restart of operations.Weiter zum vollständigen Artikel bei Mining.com
Quelle: Mining.com
