Great Panther Silver, a Canada-based silver mining company, has closed its acquisition of the Coricancha gold-silver-lead-zinc-copper underground mine and mill complex from subsidiaries of Nyrstar. The complex is located in the central Andes of Peru, approximately 56 miles east of the capital Lima. The acquisition was completed effective June 30, as a share purchase whereby the Great Panther Silver’s wholly owned Peruvian subsidiary, GP Peru, acquired all of the shares of Nyrstar Coricancha.
Under the terms of the deal, Great Panther will pay a purchase price to Nyrstar comprising of $100,000 to be paid shortly following closing, and 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 complex during the five-year period after which it is cumulative free cash-flow positive.