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Panoro Minerals Announces Closing of Early Deposit Precious Metals Purchase Agreement with Silver Wheaton for the Cotabambas Project, Peru
VANCOUVER, British Columbia, March 21, 2016 (GLOBE NEWSWIRE) -- Panoro Minerals Ltd. (TSX-V:PML) (Lima:PML) (Frankfurt:PZM) and its wholly-owned subsidiary, Pan
About this update from Panoro Minerals Ltd.
[{"type":"text","content":"VANCOUVER, British Columbia, March 21, 2016 (GLOBE NEWSWIRE) -- Panoro Minerals Ltd. (TSX-V:PML) (Lima:PML) (Frankfurt:PZM) and its wholly-owned subsidiary, Panoro Trading (Cayman) Ltd. (“Panoro” or the “Company”) are pleased to announce that they have entered into a definitive Early Deposit Precious Metals Purchase Agreement (the “Cotabambas Early Deposit Agreement”) with Silver Wheaton (Caymans) Ltd., a wholly owned subsidiary of Silver Wheaton Corp. (\"Silver Wheaton\") (TSX:SLW) (NYSE:SLW) in respect of the Cotabambas project located in Peru. The principal terms of the Cotabambas Early Deposit Agreement are as per the Company’s press release on January 27, 2016 whereby Silver Wheaton will pay Panoro upfront cash payments totalling US$140 million for 25% of the payable gold production and 100% of the payable silver production from the Company’s Cotabambas Project in Peru. In addition, Silver Wheaton will make production payments to Panoro of the lesser of the market price and US$450 per payable ounce of gold and US$5.90 per payable ounce of silver delivered to Silver Wheaton over the life of the Cotabambas Project. Panoro is entitled to receive US$14 million spread over up to 9 years as an early deposit with payments to be used to fund corporate expenses related to the Cotabambas Project. The financing includes provisions to accelerate these payments through Silver Wheaton’s matching, up to certain limits, any third party financing by Panoro targeted for exploration at the Cotabambas Project. The acceleration could result in total early deposit payments of up to US$7 million being made to Panoro in the first two years of the agreement. The balance of the US$140 million is payable in instalments during construction of the Cotabambas Project. Panoro’s President & CEO, Luquman Shaheen, states “We are pleased that the completion and closing of the Cotabambas Early Deposit Agreement has moved smoothly from the signing of the term sheet in January 2016. The closing of this important agreement allows Panoro to complete its plans for targeted investments into the Cotabambas Project. The targeted investments will be aimed at adding a low cost heap leach & SX/EW component to the project plan and drilling the Maria Jose target to delineate additional higher grade near surface mineralization. These t...