Nyrstar NV announced it has entered into share purchase agreements to sell its Contonga mine in Peru and various mineral claims located in Quebec, Canada, to subsidiaries of Glencore plc for a total cash consideration of US$26 million. The total cash consideration is made up of US$21 million for the Contonga mine and US$5 million for the mineral claims. Closing of the transactions are subject to customary closing conditions and are expected to occur in the first half of 2017.
The transactions are part of the sale process for all or the majority of Nyrstar’s mining assets, which was formally launched in January and includes the completed sale of the El Toqui mine in Chile and the announced sale of the El Mochito mine in Honduras.
Nyrstar Agrees to Sell Coricancha Mine
Nyrstar NV announced it entered into a share purchase agreement to sell its Coricancha mine in Peru to Great Panther Silver Ltd., a primary silver mining and exploration company, for a total cash consideration of USD 0.1 million plus earn-out consideration of up to US$10 million. Under the earn-out, Nyrstar will be paid 15% of the free cash-flow generated by the Coricancha mine during the five-year period after which the Coricancha mine is cumulative free cash-flow positive from closing of the transaction. Closing of the transaction is expected to occur in the first quarter of 2017.
The transactions are part of the sale process for all or the majority of Nyrstar’s mining assets, which was formally launched in January 2016 and includes the completed sale of the El Toqui mine in Chile and announced sales of the El Mochito mine in Honduras and the Contonga mine in Peru.
Nyrstar Sells El Mochito Mine for $500,000
Nyrstar NV today announces that it has successfully completed the sale of its El Mochito mine in Honduras to Morumbi Resources Inc, a Canadian-based mining company, for a total cash consideration of US$500,000. As previously announced, the share purchase agreement for the sale was entered into on September 22.
As part of the completed sale, Nyrstar and Morumbi have also entered into an off-take agreement where Morumbi will sell to 100% of the zinc and lead concentrate production from El Mochito to Nyrstar for the next 10 years at benchmark terms.