News
Silvercorp Metals to acquire Adventus
Mining for $146.5m Canadian precious metals fi rm Silvercorp Metals announced its acquisition of Adventus Mining, a copper-gold exploration company, for approximately C$200m (US$146.5m). The deal involves Silvercorp purchasing all outstanding shares of Adventus, offering Adventus shareholders a 31% premium on their shares. The acquisition, expected to close in Q3 2024, will signifi cantly boost Silvercorp’s portfolio, particularly with the addition of Adventus’ El Domo project, a high-grade copper-gold project covering 172 hectares. The move refl ects Silvercorp’s strategic focus on precious metals and its commitment to sustainable mining practices.
O3 Mining ends Aurbel Mill acquisition option agreement
with Eldorado Gold O3 Mining, a prominent gold explorer and mine developer operating in Québec, Canada, has announced the termination of its option agreement with Eldorado Gold Corporation, originally established with QMX Gold Corporation, to acquire the Aurbel Mill. The decision to terminate the option, made in alignment with O3 Mining’s strategic objectives, comes as the company redirects its focus towards optimising resource allocation. The termination allows O3 Mining to concentrate efforts on the development of its Marban Alliance project, refi ning mining engineering and estimation parameters, and exploring potential processing and tailings synergies with industry peers. The option agreement granted O3 Mining the opportunity to acquire a 100% interest in the Aurbel Mill, including the tailings and associated permits and liabilities, for a purchase price of C$5m, along with annual maintenance costs of C$87,500 per annum over a six-year term.
Pan American Silver agrees to sell La Arena to Zijin Mining for $295m
Pan American Silver, a Canadian mining company, has reached an agreement to divest its 100% interest in La Arena to Jinteng (Singapore) Mining, a subsidiary of China-based Zijin Mining Group, for a total consideration of up to $295m. The La Arena assets encompass the La Arena gold mine and the La Arena II project, situated in Peru’s La Libertad province. According to the terms of the agreement, Zijin Mining will provide an upfront payment of $245m to Pan American Silver. Additionally, Pan American will receive a net smelter return royalty of 1.5% for the La Arena II project. Furthermore, upon the commencement of commercial production at La Arena II, Zijin Mining is obligated to make a contingent payment of $50m in cash to Pan American. The transaction, subject to customary conditions and regulatory approvals, is anticipated to be finalised in Q3 2024. Pan American’s
president and CEO, Michael Steinmann, emphasised the strategic significance of the sale, stating, “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.” The divestment of La Arena is expected to bolster Pan American Silver’s financial position, facilitating the execution of its capital allocation priorities, which include investments in high-quality assets, debt reduction, and returning capital to shareholders. The La Arena property, acquired by Pan American from Tahoe Resources in 2019, has witnessed successful exploration endeavours, resulting in the addition of over 500,000oz of gold and extending the mine’s operational lifespan by five years, from 2021 to 2026, with further potential for extensions.
Glencore divests controlling stake in Volcan Compañia Minera to Transition Metals
Glencore, the global diversified natural resource company headquartered in Switzerland, has finalised a significant divestment deal, transferring its controlling stake in Peru-based polymetallic mining company Volcan Compañia Minera to Transition Metals, a subsidiary of Argentinian firm Integra Capital. The agreement entails Transition Metals acquiring the majority stake in Volcan, marking a strategic shift in ownership within the mining sector. Glencore,
which has been a shareholder of Volcan since 2004, decided to offload its interests in the company, culminating in the signing of a definitive agreement. Under the terms of the agreement, Transition Metals will pay Glencore $20m for the stake acquisition. Additionally, Glencore has committed to providing a secured facility of up to $40m to fund certain mandatory tender offer obligations of Transition Metals in compliance with Peruvian laws and regulations.
World Mining Frontiers /
www.nsenergybusiness.com
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