Great Panther Silver Completes Acquisition of Coricancha Polymetallic Mine in Peru

Great Panther Silver (TSX: GPR) (NYSE MKT: GPL) (“Great Panther” or the “Company”) announces the closing of its previously announced acquisition of the Coricancha gold-silver-lead-zinc-copper underground mine and mill complex (the “CMC”) from subsidiaries of Nyrstar N.V. (“Nyrstar”).  The CMC is located in the central Andes of Peru, approximately 90 kilometres by paved highway east of the city of Lima.
The acquisition was completed effective June 30, 2017 as a share purchase whereby the Company’s wholly owned Peruvian subsidiary (“GP Peru”) acquired all of the shares of Nyrstar Coricancha S.A. from subsidiaries of Nyrstar.
Coricancha owns a 100% interest in the CMC.  The acquisition was completed pursuant to the Amended Share Purchase Agreement announced on June 14, 2017, subsequently amended to address certain follow-on agreements.  Under the terms of the Final Share Purchase Agreement, Great Panther will pay a purchase price to Nyrstar comprising US$0.1 million to be paid shortly following closing, and earn-out consideration of up to US$10.0 million.  Under the earn-out, Nyrstar will be paid 15% of the free cash-flow generated by the CMC during the 5-year period after which the CMC is cumulative free cash-flow positive.
Robert Archer, President & CEO, said:

“The acquisition of Coricancha represents a major milestone for Great Panther Silver, and the culmination of our search for the right asset to build a foundation in Peru. 
The project has excellent potential to be a new mine for the Company, and we are immediately ramping up our evaluation toward that goal.”

Click here to read the full text release.