Pan American Silver Corp. (NYSE: PAAS) (TSX: PAAS) ("Pan
American") has completed the previously announced divestment of its
56.25% interest in the MARA project in Argentina and its 92.3%
interest in the Morococha mine in Peru.
The sale of these non-core assets is aligned with Pan American's
stated aim of optimizing its portfolio following the acquisition of
Yamana Gold Inc. 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 US$15.7 million in the second quarter of 2023.
Under the terms of the agreement for the MARA sale, Glencore
International AG ("Glencore") paid US$475 million, in cash and
granted to Pan American a life-of-mine copper net smelter return
royalty of 0.75%, with the right for Pan American to freely
transfer the royalty. Glencore has assumed 100% ownership of the
MARA project following completion of the transaction on September
20, 2023.
Under the terms of the agreement for the Morococha sale,
Alpayana S.A. paid US$25 million in cash for the 92.3% interest in
Compañia Minera Argentum S.A., Pan American's Peruvian subsidiary
that owned the Morococha mine.
Pan American placed the Morococha mine on care and maintenance
in early 2022 while it evaluated alternative strategic
opportunities for the asset following the closure of the Amistad
processing plant, pursuant to an agreement with Aluminum
Corporation of China. The transaction closed on September 22,
2023.
The sale of Pan American's 57.74% interest in Agua de la Falda
S.A., that is held by a subsidiary of Pan American, also announced
previously on July 31, 2023, is expected to be completed in the
fourth quarter of 2023. Under the terms of the agreement, a
subsidiary of Rio Tinto Limited will pay US$45.55 million in cash
upon closing and will grant to Pan American's subsidiary a net
smelter return royalty of 1.25% on all precious metals and a net
smelter return royalty of 0.2% on all base metals, on a pro rata
basis in accordance with the interest acquired by the Rio Tinto
subsidiary, on production from certain mineral concessions.
About Pan American Silver
Pan American Silver is a leading producer of precious metals in
the Americas, operating silver and gold mines in Canada, Mexico,
Peru, Bolivia, Argentina, Chile and Brazil. We also own the Escobal
mine in Guatemala that is currently not operating, and we hold
interests in exploration and development projects. We have been
operating in the Americas for nearly three decades, earning an
industry-leading reputation for sustainability performance,
operational excellence and prudent financial management. We are
headquartered in Vancouver, B.C. and our shares trade on the New
York Stock Exchange and the Toronto Stock Exchange under the symbol
"PAAS".
Learn more at panamericansilver.com.
Cautionary Note Regarding Forward-Looking Statements and
Information
Certain of the statements and information in this news release
constitute "forward-looking statements" within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and
"forward-looking information" within the meaning of applicable
Canadian provincial securities laws. All statements, other than
statements of historical fact, are forward-looking statements or
information. Forward-looking statements or information in this news
release relate to, among other things: the anticipated benefits
from the completion of the sale of the MARA project and Morococha,
including with respect to any anticipated reduction in costs; the
anticipated closing of the Agua de la Falda transaction and the
timing and effects of the same; and the impact of such transactions
on Pan American’s future financial or operational performance.
These forward-looking statements and information reflect Pan
American’s current views with respect to future events and are
necessarily based upon a number of assumptions that, while
considered reasonable by Pan American, are inherently subject to
significant operational, business, economic and regulatory
uncertainties and contingencies. These assumptions include: the
ability of Pan American to reduce its annual project development,
reclamation and care and maintenance costs; the timing and impact
of planned capital expenditure projects, including anticipated
sustaining, project, and exploration expenditures; tonnage of ore
to be mined and processed; future anticipated prices for gold,
silver and other metals and assumed foreign exchange rates; ; and
all necessary regulatory approvals for our operations are received
in a timely manner. The foregoing list of assumptions is not
exhaustive.
Pan American cautions the reader that forward-looking statements
and information involve known and unknown risks, uncertainties and
other factors that may cause actual results and developments to
differ materially from those expressed or implied by such
forward-looking statements or information contained in this news
release and Pan American has made assumptions and estimates based
on or related to many of these factors. Such factors include,
without limitation: the duration and effect of local and world-wide
inflationary pressures and the potential for economic recessions;
fluctuations in silver, gold and base metal prices; fluctuations in
prices for energy inputs, labour, materials, supplies and services
(including transportation); fluctuations in currency markets (such
as the PEN, MXN, ARS, BOB, GTQ, CAD, CLP and BRL versus the USD);
changes in laws, regulations and government practices in the
jurisdictions where we operate, including environmental, export and
import laws and regulations; changes in national and local
government, legislation, taxation, controls or regulations and
political, legal or economic developments in Canada, the United
States, Mexico, Peru, Argentina, Bolivia, Guatemala, Chile, Brazil
or other countries where Pan American may carry on business,
including legal restrictions relating to mining; diminishing
quantities or grades of mineral reserves as properties are mined;
increased competition in the mining industry for equipment and
qualified personnel; those factors identified under the caption
"Risks Related to Pan American's Business" in Pan American's most
recent form 40-F and Annual Information Form filed with the United
States Securities and Exchange Commission and Canadian provincial
securities regulatory authorities, respectively; and those factors
identified under the caption "Risks of the Business" in Yamana's
most recent form 40-F and Annual Information Form filed with the
United States Securities and Exchange Commission and Canadian
provincial securities regulatory authorities, respectively.
Although Pan American has attempted to identify important factors
that could cause actual results to differ materially, there may be
other factors that cause results not to be as anticipated,
estimated, described or intended. Investors are cautioned against
undue reliance on forward-looking statements or information.
Forward-looking statements and information are designed to help
readers understand management's current views of our near- and
longer term prospects and may not be appropriate for other
purposes. Pan American does not intend, nor does it assume any
obligation to update or revise forward-looking statements or
information, whether as a result of new information, changes in
assumptions, future events or otherwise, except to the extent
required by applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20230923170039/en/
For more information contact: Siren Fisekci VP, Investor
Relations & Corporate Communications Ph: 604-806-3191 Email:
ir@panamericansilver.com
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