- Panoro Minerals (TSXV:PML) has successfully completed the sale of its Cochasayhuas Gold Project to Peru-based Mintania SAC
- As consideration for the sale, Panoro will received a total of C$3.33 million, paid out in instalments over the next three years
- The company has also been granted a net smelter return royalty of the project of five per cent for a period of 15 years
- Mintania plans to commence mining operations as soon as design and permitting can be completed
- Panoro Minerals (PML) is holding steady and is trading at 10 cents per share
Panoro Minerals (TSXV:PML) has successfully completed the sale of its Cochasayhuas Gold Project to Peru-based Mintania SAC.
Under the terms of the deal, Mintania will issue a total of C$3.33 million in cash to Panoro, paid out in instalments over the next three years. Approximately $610,000 will be paid on closing, with the remaining $2.72 million to be transferred from 2021 until 2023.
Panoro has also been granted a net smelter return royalty on the Cochasayhuas Gold Project of five per cent. This is applicable for a period of 15 years from the start of commercial production.
Located in the Progreso district of Southern Peru, the project covers 1,836 hectares and was acquired by Panoro in 2007. Since then, the company has undertaken various exploration programs to define the extension of the Cochasayhuas vein along strike, as well as several new parallel veins.
One of these programs was carried out at the San Fernando-San Lucas vein, which extends five kilometres along strike, roughly 100 to 200 metres west of the Cochasayhuas vein. As a result, the potential for additional ore shoots near the surface was identified as part of a similar geologic structure as the Cochasayhuas vein.
Luquman Shaheen, President and CEO of Panoro Minerals, said he is pleased to have completed the transaction with Mintania.
“The cash payments and NSR will add to the funding available to Panoro to focus on its core Cotabambas Project.
“Leveraging our non-core projects with strategic partnerships to mitigate financing risk and share dilution, while maintaining longer term upside for our shareholders, will remain a key part of our strategy into the future,” he said.
Mintania has said that it intends to commence mining operations upon the completion of design and permitting requirements and plans to process the ore at the company’s existing processing plant in Peru.
Panoro Minerals (PML) is holding steady and is trading at 10 cents per share, as of 12:25pm EDT.