Canadian producer Cerro de Pasco Resources has entered into a share purchase agreement with Peruvian investment group FIC03 Fondo de Inversión Privado (FIC03), part of Finanzas e Inversiones Corporativas, to sell its Santander zinc mine in Peru.
The deal was made for $2 cash and a variable price of up to $10 million. This will be paid from the commercial production date from Santander, an underground operation near Lima. It is considered an arm’s-length transaction.
FIC is a private equity fund management based in Peru. Its investment portfolio focuses on large-scale mining projects in the central region of the country.
“The sale of the Santander mine aligns with our strategy to focus on reducing corporate debt,” CEO Guy Goulet said.
“We thank the Santander team for their commitment and dedication, and we wish them success in executing the projects we have developed together.”
Cerro de Pasco Resources first acquired the Santander mine in late 2021. In June 2023, the operation underwent curtailment due to macro-economic pressures affecting zinc price.
Source: pascoresources.com