Mineros sells Gualcamayo after five years
Colombia’s Mineros has agreed to sell its Gualcamayo gold mine in San Juan Argentina for US$4 million to Eris, a sum advanced by the purchaser to fund ongoing operations and secure exclusivity during the negotiations.
Eris will also make the $30 million contingent payment payable to Pan American Silver should the Deep Carbonates Project ever be put into production.
Mineros acquired the mine for $30 million from Yamana Gold in October 2018 and enjoyed the last years of gold oxide production while seeking a processing option for the Deep Carbonates Project, an undeveloped resource below the oxide gold mineralisation.
Pan American obtained the right to the contingent payment following its acquisition of Yamana Gold assets earlier this year.
Eris also agreed to provide a $10 million credit facility to Gualcamayo of which $2 million was advanced prior to execution of the agreement, to ensure the subsidiary company is properly capitalised. Upon closing, Mineros will pay S$6.5 million to the purchaser to cover certain outstanding obligations.
"The sale of Gualcamayo is in line with our strategy of actively managing our portfolio and focusing management's efforts on high margin, long-life and lower cost assets," said Mineros chief executive Andres Restrepo.
Guidance
Mineros has guided 2023 production from Gualcamayo of between 55,000 and 63,000oz of gold. At the closing of the transaction in September, Mineros expects that it will have produced between 31,000 and 33,000oz and so will provide updated production and cost guidance upon closing.
Earlier this year, Mineros terminated a strategic agreement with explorer Royal Road Minerals which saw Royal Road relinquish its 50% JV interests in Nicaragua while Mineros relinquished its JV interests in Colombia.
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