Business
Panoro Minerals Completes Sale of Kusiorcco Project to Hudbay Minerals for up to US$5 million plus a 2% NSR Royalty
VANCOUVER, British Columbia, Jan. 08, 2018 (GLOBE NEWSWIRE) -- Panoro Minerals Ltd. (TSXV:PML) (Lima:PML) (Frankfurt:PZM) ("Panoro", the "Company") is pleased t
About this update from Panoro Minerals Ltd.
[{"type":"text","content":"VANCOUVER, British Columbia, Jan. 08, 2018 (GLOBE NEWSWIRE) -- Panoro Minerals Ltd. (TSXV:PML) (Lima:PML) (Frankfurt:PZM) (\"Panoro\", the \"Company\") is pleased to announce that its wholly-owned subsidiary, Panoro Apurimac S.A., has transferred a 100% interest in the 12 mining concessions that comprise the Kusiorcco project in southern Peru to a wholly owned subsidiary of Hudbay Minerals Inc. (“Hudbay”). The Kusiorcco project is located near Hudbay’s Constancia mine. In consideration for the transfer of the mining concessions, Panoro has received an upfront cash payment of US$3 million from Hudbay and will receive additional payments totalling US$2 million upon the completion of certain milestones by Hudbay. Hudbay has also granted Panoro a 2% net smelter returns (“NSR”) royalty on mineral production from the Kusiorcco project. In connection with the acquisition, Hudbay has agreed to exercise, on or before January 31, 2018, 2,060,484 common share purchase warrants of Panoro which are held by Hudbay and exercisable at a price of C$0.27 per share, for aggregate proceeds of C$556,330. These warrants otherwise would have been exercisable until August 26, 2018. Panoro will use the US$3 million upfront payment and proceeds from the exercise of the warrants for exploration activities on its Cotabambas project. “We are grateful for Hudbay’s continued strong relationship with, and support for, Panoro. They are a premier mine building team with a track record of successful community relations and mine development in Peru,” commented Luquman Shaheen, CEO and President of Panoro. “This transaction successfully monetizes a non-core asset for Panoro, and will allow Panoro to deploy the proceeds to further advance our core Cotabambas project, while retaining upside in Kusiorcco through the royalty. The proceeds from the transfer of concessions plus early exercise of warrants will be directed to exploration and step out drilling at both Cluster 1 and Cluster 2 at the Cotabambas project. The 2017 exploration work at Cotabambas has identified growth potential at both the Maria Jose and Petra-David Targets in Cluster 1. The Chaupec skarn target in Cluster 2 presents yet another intriguing target. The proceeds from this transaction together with scheduled payments from Wheaton Precious Metals are ex...