Nyrstar Sells Contonga Mine
The transactions are part of the sale process for all or the majority of Nyrstarís mining assets, which was formally launched in January and includes the completed sale of the El Toqui mine in Chile and the announced sale of the El Mochito mine in Honduras.
Nyrstar NV announced it also entered into a share purchase agreement to sell its Coricancha mine in Peru to Great Panther Silver Ltd., a primary silver mining and exploration company, for a total cash consideration of $100,000 plus earn-out consideration of up to $10 million. Under the earn-out, Nyrstar will be paid 15% of the free cash-flow generated by the Coricancha mine during the five-year period after which the Coricancha mine is cumulative free cash-flow positive from closing of the transaction. Closing of the transaction is expected to occur in the first quarter of 2017. The transactions are part of the sale process for all or the majority of Nyrstarís mining assets, which was formally launched in January 2016 and includes the completed sale of the El Toqui mine in Chile and announced sales of the El Mochito mine in Honduras and the Contonga mine in Peru.
Nyrstar NV also successfully completed the sale of its El Mochito mine in Honduras to Morumbi Resources Inc, a Canadian-based mining company, for a total cash consideration of $500,000. As previously announced, the share purchase agreement for the sale was entered into on September 22. As part of the completed sale, Nyrstar and Morumbi have also entered into an offtake agreement where Morumbi will sell to 100% of the zinc and lead concentrate production from El Mochito to Nyrstar for the next 10 years at benchmark terms.