Pan American Silver completes divestment of MARA, Morococha

Pan American Silver (PAAS) has completed the previously announced divestment of its 56.25% interest in the MARA project in Argentina and its 92.3% interest in the Morococha mine in Peru. The sale of these non-core assets is aligned with Pan American’s stated aim of optimizing its portfolio following the acquisition of Yamana Gold. The transactions will allow Pan American to reduce its annual project development, reclamation and care and maintenance costs, which for the MARA project and Morococha amounted to US$15.7 million in the second quarter of 2023. Under the terms of the agreement for the MARA sale, Glencore International (GLNCY) paid $475 million, in cash and granted to Pan American a life-of-mine copper net smelter return royalty of 0.75%, with the right for Pan American to freely transfer the royalty. Glencore has assumed 100% ownership of the MARA project following completion of the transaction on September 20, 2023. Under the terms of the agreement for the Morococha sale, Alpayana S.A. paid $25 million in cash for the 92.3% interest in Compania Minera Argentum S.A., Pan American’s Peruvian subsidiary that owned the Morococha mine. The sale of Pan American’s 57.74% interest in Agua de la Falda S.A., that is held by a subsidiary of Pan American, also announced previously on July 31, 2023, is expected to be completed in the fourth quarter of 2023.