Nyrstar has reached a two-year option agreement to sell its Coricancha mining complex, located 90 kilometers east of Lima, Peru, to Great Panther Silver Ltd. – a Canadian precious metals mining and exploration company with operations in Latin America.
The terms of the option agreement call for Great Panther to make a cash payment of $1.5 million upon signing; a second option payment of $1.5 million is due on the first anniversary of the signing to extend the option for a second year. Should Great Panther exercise the option on or before the second anniversary, the companies would submit $5 million for 100% of the shares of Nyrstar Coricancha, S.A. (plus the second option payment if not already paid).
Under the option agreement, Great Panther will undertake certain exploration activities during the two-year option period, $2 million in the first year and $3 million in the second year.
Coricancha was acquired by Nyrstar in October 2009. It has been on care and maintenance since August 2013. The mining complex consists of a poly-metallic underground mine with more than 60 years of operating history and a 600-metric-ton-per-day ore processing facility. Reserves and resources include gold, silver, zinc, lead and copper.