Pan American Silver has closed the sale of its 56.25% interest in the MARA copper-gold project in Argentina and its 92.3% interest in the Morococha mine in Peru.

Glencore International has acquired Pan American’s 56.25% stake in the MARA project by making a cash payment of $475m and granting a life-of-mine copper net smelter return royalty of 0.75%.

With the deal, Glencore owns a 100% stake in the MARA project in Argentina’s Catamarca province.

The project is estimated to have proven and probable mineral reserves of 5.4 million tonnes (mt) of copper and 7.4 million ounces (moz) of gold contained in 1.105 billion tonnes of ore.

Furthermore, Alpayana has acquired Pan American’s 92.3% stake in Peruvian subsidiary Compañia Minera Argentum, which owns the Morococha mine, for $25m in cash.

The Morococha mine was placed on care and maintenance in early 2022 as Pan American assessed other alternative strategic opportunities for the asset. This was due to the closure of the Amistad processing plant.

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The sale of these non-core assets forms part of Pan American Silver’s aim to optimise its portfolio, following the acquisition of Canada’s Yamana Gold.

In a press statement, Pan American said: “The transactions will allow Pan American to reduce its annual project development, reclamation and care and maintenance costs, which for the MARA project and Morococha amounted to $15.7m in the second quarter of 2023.”

Pan American plans to close the previously announced sale of a 57.74% stake in its Chilean company Agua de la Falda (ADLF) to Rio Tinto Mining & Exploration Ltd. Agencia en Chile SPA, in Q4 2023.

ADLF owns the Jeronimo project in the Atacama region, as well as several adjoining concessions, in which Pan American indirectly holds a 100% stake.