Business
Pan American Silver Announces Divestment of MARA, Morococha, Agua de la Falda and Non-Controlling Equity Interests
Divestment of non-core assets advances the Company's portfolio optimization strategy Total cash proceeds of US$593 million strengthen the balance sheet
About this update from Pan American Silver Corp.
[{"type":"text","content":" Divestment of non-core assets advances the Company's portfolio optimization strategy Total cash proceeds of US$593 million strengthen the balance sheet Reduces 2023 and future care and maintenance costs VANCOUVER, British Columbia / Jul 31, 2023 / Business Wire / Pan American Silver Corp. (NYSE: PAAS) (TSX: PAAS) (\"Pan American\" or the \"Company\") is pleased to announce the status of our divestment of certain non-core assets, including the sale of our interest in the MARA project in Argentina, the Morococha mine in Peru, and the Agua de la Falda project in Chile. \"The sale of these non-core assets is aligned with our stated aim of optimizing our portfolio following the Yamana acquisition. These transactions not only reaffirm our commitment to our core business but also yield substantial and immediate value to our shareholders, while maintaining future upside through the retention of copper and gold royalties with strong counterparties,\" said Michael Steinmann, President and Chief Executive Officer of Pan American. \"The consideration for the sale of MARA, coupled with the other sales, will yield total cash proceeds of US$593 million. The cash proceeds will allow us to both fully repay the amount drawn on our credit facility and increase our cash position, further enhancing the resilience of our balance sheet. These transactions will also allow Pan American to reduce its annual project development, reclamation and care and maintenance costs, which for MARA and Morococha amounted to US$15.7 million in Q2 2023. This improved balance sheet strength creates enhanced opportunities for the Company, providing increased capital to advance key strategic projects, including the La Colorada Skarn Project.\" MARA Pan American has entered into a binding agreement to sell its 56.25% interest in the MARA Project (\"MARA\" or the \"Project\"), located in the Catamarca province of Argentina, to Glencore International AG (\"Glencore\"). Pan American acquired its 56.25% interest in MARA through its acquisition of Yamana Gold Inc. (\"Yamana\"), which closed on March 31, 2023. At present, Glencore holds a 43.75% interest in MARA, and upon the completion of the transaction, Glencore will assume 100% ownership of the Project. MARA was initially established as a joint venture in December 2020 amongst Yamana, Glencore and Newmont Corporation (\"New...