Pan American Silver has received regulatory approval from Investment Canada to proceed with the sale of its 100% interest in La Arena to Jinteng (Singapore) Mining , a subsidiary of Zijin Mining Group .
The sale of the “La Arena” gold mine by Pan American Silver
This transaction includes both the La Arena gold mine and the La Arena II expansion project, located in Peru. The agreement also secures Pan American 60% of the future supply of copper concentrate from the La Arena II project, destined for North American markets, following the start of commercial production.
The agreement provides for Zijin to pay $245 million in cash upon closing of the transaction, in addition to providing Pan American with a 1.5% royalty on gold smelter ROI over the life of the project. Additionally, Pan American will receive a contingent payment of $50 million upon commencement of commercial production at La Arena II.
Zijin Mining , one of the largest mining groups globally, will leverage the gold and copper resources at La Arena and La Arena II to strengthen its presence in the metals sector, while Pan American Silver continues to focus on its strategic assets and operational sustainability.
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Source and photo: Pan American Silver
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