GREAT PANTHER SILVER (TSX: GPR) (NYSE MKT: GPL) (“Great Panther”; or the “Company”) reports an update on the previously announced agreement to acquire the Coricancha gold-silver-lead-zinc-copper mine and mill complex (the “CMC”) from Nyrstar (“Nyrstar”).
The CMC is located in the central Andes of Peru, approximately 90 kilometres by paved highway east of the city of Lima. Under the terms of the agreement signed in December 2016, the acquisition is structured as a share purchase, whereby the Company’s wholly owned Peruvian subsidiary will acquire all of the shares of Nyrstar Coricancha from subsidiaries of Nyrstar.
Recently, the Company and Nyrstar executed an Amended Share Purchase Agreement to reflect the reorganization of Nyrstar’s investments in Peru to facilitate its planned divestitures.
The amendments to the Share Purchase Agreement do not materially impact the terms of the transactions announced in December 2016.
The transaction is still subject to several customary closing conditions which the Company and Nyrstar are aiming to complete before the end of June 2017, or shortly thereafter. Certain of these conditions depend on responses from third parties or authorities and therefore timing is subject to some uncertainty.
Once the transaction is completed, the Company’s plans include further evaluations of the current mine and processing infrastructure, approximately 7,800 metres of underground drilling, environmental studies, and initiation of a preliminary feasibility study (PFS).