Mining company Mineros has completed the divestment of a 100% interest in the Gualcamayo property, which hosts the Gualcamayo mine and the deep carbonates project in San Juan, Argentina, to Eris.
As part of a deal announced earlier this month, Eris acquired Minas Argentinas (MASA), which holds a 100% stake in the Gualcamayo property.
MASA has been acquired from Mineros’ subsidiaries Mineros Chile Rentista de Capitales Mobiliarios and Mineros Argentina.
Eris has assumed all existing obligations of MASA at the closing date of the transaction as well as made a $6.5m payment to Mineros to cover a portion of those obligations.
Furthermore, Eris has assumed all of the obligations of Mineros and its subsidiaries related to a $30m contingent payment. This would become payable to Sandstorm subsidiary Gold Nomad Royalty Company, subject to the commissioning of the deep carbonates project.
Mineros expects to incur between $38m and $41m in one-time non-cash costs in Q3 2023, as a result of the transaction.
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Mineros CEO and president Andres Restrepo earlier said: “The sale of the Gualcamayo property is in line with our strategy of actively managing our portfolio and focusing management’s efforts on high margin, long-life and lower cost assets.
“We are pleased to sell the Gualcamayo property to Eris LLC as we have full confidence that they will leverage their experience and knowledge gained from their local investments to maximise and enhance the future of the deep carbonates project.”
Commissioned in 2009, the Gualcamayo property is an open pit and underground mine and heap leach operation.
The property has a total area of 39,185ha, of which only 20% is claimed to have been explored.