Cerro de Pasco Resources announces the purchase of the Santander mine from Canada’s Trevali Mining

Cerro de Pasco Resources (CDPR) announced on Monday the purchase of the Santander mine, located on the western flank of the Cordillera de Puajanca, in the Huaralino district of Santa Cruz de Andamarca, from the hands of the Canadian Trevali Mining.

Under the terms of the agreement, Trevali will receive 10 million Cerro De Pasco common shares, Canadian $ 1 million in cash and a 1% net smelter return royalty on certain areas of the Santander mine excluding areas where there is currently a defined mineral resource.

According to a press release shared by the mining company, the common shares of CDPR issued to Trevali as consideration are expected to represent approximately 3.5% of the current issued and outstanding shares of Cerro De Pasco after the closing of the transaction. , as reported by the company in a statement.

Ricus Grimbeek, CEO of Trevali, which is listed on Toronto Stock Exchange (TSX), He stressed that the operation is “consistent with our disciplined capital allocation strategy”, focused on reducing corporate debt and investing in the expansion project “RP2.0” in Rosh Pinah, located in Namibia.

“We will work closely with the team to ensure a smooth transition and we look forward to working with Cerro De Pasco to continue adding value in Santander,” said the executive.

For his part, the CEO of Cerro de Pasco Resources, which is listed on the Canadian Stock Exchange (CSE), Guy Goulet noted that the mine offers material potential to increase operating cash flow and a significant exploration advantage.

For now, the company plans to extend the operational life of the Magistral deposit, located in Áncash, while developing access to the higher grade Santander Pipe deposit for the next 24 to 36 months, which will extend the mine’s useful life by five years. .

Cerro de Pasco Resurces: Santander’s potential

Trevali is a global base metals mining company based in Vancouver, Canada. Most of Trevali’s revenue comes from the extraction of base metals at its four operating assets: the Perkoa mine in Burkina Faso, of which it owns 90%, the Rosh Pinah mine in Namibia, the Caribou mine in northern New Brunswick (Canada) and the Santander mine in Peru.

The proximity to Cerro de Pasco Resources’ El Metalurgista concession gave the company the potential to use Santander’s infrastructure for future development, Goulet said.

Trevali’s guidance for 2021 indicates that Santander will produce 50 million to 55 million pounds of payable zinc, 4 million pounds of payable lead and 282,000 oz to 297,000 oz of silver payable per year at a total maintenance cost of US $ 1 .08 per pound to $ 1.14 per pound of zinc payable.