Upon closing, Zijin will pay $245 million in cash and grant Pan American a 1.5% life-of-mine gold net smelter return royalty from the La Arena II project. Additionally, once commercial production commences, Zijin will make a further contingent cash payment of $50 million.
The La Arena property is located in the La Libertad province of Peru. It comprises the La Arena gold mine and the La Arena II project, which is in advanced exploration. The open-pit mine has been in operation since 2011.
Since acquiring the mine from Tahoe Resources in 2019, Pan American said it has added 535,521 oz. of gold through exploration and extended the mine life from 2021 to 2026, with the potential for further extension.
Pan American Silver has silver and gold mines across the Americas, with active operations in Canada, Mexico, Peru, Brazil, Bolivia, Chile and Argentina. The company also owns the Escobal mine in Guatemala, which…
