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Nyrstar NV has entered into a Share Purchase Agreement to sell its Coricancha mine in Peru to Great Panther Silver (TSX:GPR,NYSEMKT:GPL) for a total cash consideration of USD 0.1 million plus earn-out consideration of up to US 10 million. As quoted in the press release: Under the earn-out, Nyrstar will be paid 15% of the …
Nyrstar NV has entered into a Share Purchase Agreement to sell its Coricancha mine in Peru to Great Panther Silver (TSX:GPR,NYSEMKT:GPL) for a total cash consideration of USD 0.1 million plus earn-out consideration of up to US 10 million.
As quoted in the press release:
Under the earn-out, Nyrstar will be paid 15% of the free cash-flow generated by the Coricancha mine during the 5-year period after which the Coricancha mine is cumulative free cash-flow positive from closing of the Transaction. Closing of the Transaction is subject to customary closing conditions and is expected to occur in Q1 2017. The Transactions are part of the sale process for all or the majority of Nyrstar’s mining assets which was formally launched in January 2016 and includes the completed sale of the El Toqui mine in Chile and the announced sales of the El Mochito mine in Honduras and the Contonga mine in Peru. Nyrstar is continuing to progress the divestment of mining assets and will issue further updates in due course.BMO Capital Markets Limited and Lazard & Co. are acting as financial advisors to Nyrstar in connection with the Transactions.