Zijin Mining Group (02899.HK) announced on November 7th that its overseas wholly-owned subsidiary, Jinshen Mining Co., Ltd. (hereinafter referred to as "Jinshen Mining"), intends to acquire 100% equity of Pan American Silver Corp.'s Peruvian La Arena gold mine and Phase II project (hereinafter referred to as the "La Arena Project") for a consideration of $0.245 billion, $50 million upon commercial production of the Phase II project, and 1.5% of net gold smelting revenue.
Pan American Silver Corp. is headquartered in Vancouver, Canada, listed on the New York Stock Exchange and the Toronto Stock Exchange with the stock code PAAS. It is a leading silver and gold producer in the Americas, with mining projects in Canada, Mexico, Peru, Brazil, Bolivia, Chile, and Argentina.
The company believes that La Arena Project is located in a world-renowned metallogenic belt and is a producing mine with significant copper and gold resources and good exploration potential; the mining area has relatively complete infrastructure, a long service life, good local transportation and electrical utilities, and is expected to have significant economic benefits. The La Arena Project is situated in a traditional mining area in Peru with many producing mines and a long history of mining development; the company will maintain and strengthen the good community relations already established by the La Arena Project, and is committed to contributing to local socioeconomic development. The La Arena Project is 360 kilometers away from the company's Baihe Copper-Molybdenum Mine, with synergies in management, and the development of the La Arena Project will also help accelerate the Baihe Project.
