Canada Approves Sale of Peru’s La Arena Mine to Zijin Mining
Photo: Wikimedia Commons.
Pan American Silver has received approval from the Canadian government to sell its La Arena mine and La Arena II project, located in La Libertad, Peru, to a subsidiary of China’s Zijin Mining Group.
Under the terms of the agreement, upon closing, Zijin will pay Pan American US$ 245 million in cash and grant a 1.5% net smelter return royalty on gold from the La Arena II project for its entire productive life.
The agreement also includes an additional US$ 50 million cash payment from Zijin once commercial production begins at the La Arena II project.
Pan American Silver is a producer of silver and gold with operations across the Americas, including mines in Canada, Mexico, Peru, Brazil, Bolivia, Chile, and Argentina. It also owns the Escobal mine in Guatemala, currently not in operation.
The sale of the La Arena mine to Zijin aligns with Pan American’s strategy to optimize its assets and secure continuous income through the agreed royalty. With this transaction, the company aims to strengthen its position in the mining industry while supporting the development of new projects.
The Canadian government’s approval was granted under the Investment Canada Act and is conditional upon a joint agreement between Pan American and Zijin.
This agreement will allow Pan American to secure 60% of the future copper concentrate supply from the La Arena II project for commercial purposes in North American markets. With all regulatory approvals in place, the transaction is expected to close by the end of the fourth quarter of 2024.
Main Source: (Spanish)
Canadá aprueba venta de la mina La Arena de Pan American Silver a Zijin Mining – Rumbo Minero
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Canada approves Pan American’s Peru asset sale to Zijin – Mining weekly