The company noted that the successful exploration efforts have added more than 500,000oz of gold. Credit: optimarc via Shutterstock.com.

Pan American Silver has agreed to divest its La Arena mine in Peru to Zijin Mining Group‘s subsidiary, Jinteng (Singapore) Mining, for a total consideration of $295m (C$404.62m).

This includes a $245m cash consideration, which will be paid upfront, a $50m contingent payment and a net smelter return (NSR) royalty.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Located in the La Libertad province, the La Arena mine and the La Arena II project have been under Pan American’s ownership since 2019.

The company has significantly increased the mine’s gold reserves and extended its operational life.

At the transaction’s closing, Zijin will pay $245m in cash and provide Pan American with a 1.5% NSR royalty on the La Arena II project’s gold production.

See Also:

An additional $50m contingent payment will be made upon the commencement of commercial production at La Arena II.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The deal is expected to be finalised in the third quarter of 2024, pending regulatory approvals and the fulfilment of customary conditions.

Pan American noted that successful exploration has added more than 500,000oz of gold and extended the mine’s life by five years, with potential for further extensions.

Pan American Silver president and CEO Michael Steinmann said: “With the sale of La Arena, we continue to deliver on our strategy to optimise our portfolio, following the Yamana transaction, while maintaining future upside through the retention of royalties.

“Proceeds from the transaction will further strengthen our financial position and allow us to deliver on our capital allocation priorities of investing in high-quality assets, debt reduction and returning capital to our shareholders.”

Headquartered in Vancouver, British Columbia, Pan American Silver operates mines in Argentina, Bolivia, Brazil, Canada, Chile, Mexico and Peru. It also owns the Escobal mine in Guatemala, which is currently not operational.