Cerro de Pasco Resources (CDPR) completed the acquisition from Trevali Mining Corp. of the Santander zinc mine, located 215 kilometers northeast of Lima, Peru, and comprising an underground mine, a 2,000-metric-ton-per-day processing mill, a conventional sulphide flotation mill, and associated infrastructure.
“We remain highly focused, in line with our core skills, namely, detailed management of late-stage mining operations and reprocessing of mineral stockpiles and tailings,” CDPR CEO Guy Goulet said.
The company built a specialized team of experts in 2019 with a view to taking control of the entire Cerro de Pasco mining complex from Volcan/Glencore. Negotiations were suspended pending exploration of the Quiulacocha Tailings, now approved by the Ministry of Energy and Mines and expected to begin at the end of the ongoing rainy season (April).
The company plans to extend the operating life of the Magistral orebody, while developing access into the higher-grade Santander Pipe orebody over the next 24 to 36 months, which would extend the life of the mine by five years. Additionally, CDPR plans to increase exploration expenditure on the property.
Trevali will receive C$1 million ($782,000) in cash; 10 million shares of CDPR, 10% of which will be released at closing of the transaction with an 15% released every six months afterward The company will also be entitled to a net smelter royalty equal to 1% on all new deposits beyond those resources currently defined at the Magistral and Santander Pipe deposits. A contingent payment of $2.5 million in the event that the LME average zinc price for 2022 is equal to or greater than $1.30/lb.