Pan American Silver sells $593M in South American assets in trio of deals
By The Canadian Press on July 31, 2023.
VANCOUVER – Pan American Silver Corp. says it has reached several deals to sell some of its South American assets for a combined US$593 million. The Vancouver-based mining business says it has signed an agreement with Glencore International AG to sell its 56.25 per cent interest in its Mara project located in Catamarca, Argentina. Glencore will pay US$475 million in cash for the stake and will grant Pan American a life-of-mine copper net smelter return royalty of 0.75 per cent. The company has also struck a US$25 million agreement with Peruvian mining company Alpayana S.A. to sell its 92.3 per cent stake in its Compañia Minera Argentum S.A., Pan American’s Peruvian subsidiary which owns a Morococha mine. Pan American’s final deal was reached with Rio Tinto Mining & Exploration Ltd. Agencia en Chile SPA, which will acquire a 57.75 per cent interest in a company with operations in northern Chile. Rio Tinto will pay US$46 million and will grant Pan American a net smelter royalty of 1.25 per cent on all precious metals and a royalty of 0.2 per cent on all base metals, on a pro rata basis. Each of the deals is expected to close in the third quarter of this year. This report by The Canadian Press was first published July 31, 2023. Companies in this story: (TSX:PAAS) 10-9
