Asset sales continue to occur for Great Panther Mining, whom announced this morning that it has reached a final agreement to sell certain Peruvian assets in exchange for much needed cash.
The transaction will see the company sell Great Panther Peru Holdings Ltd, as well as Great Panther Silver Peru SAC to that of Newrange Gold Corp (TSXV: NRG). The deal will see the firms Coricancha property and mine sold to Newrange. The assets include a past producing mine that has been on care and maintenance since before Great Panther acquired it in 2017.
At the time of acquisition, Great Panther claimed the mine could produce up to 3.0 million silver equivalent ounces per year, and was to be placed into production by the second half of 2018 – which never happened. The property at the time was purchased for US$100,000, as well as 15% of free cash flow up to a maximum amount of $10.0 million.
“We are pleased to have moved forward in our discussions with Great Panther to acquire the Coricancha Mine. We anticipate filing all required documents with the TSX Venture Exchange this week, including a NI 43-101 technical report, as the acquisition is subject to exchange approval. In parallel, we are working on a financing to ensure that we have adequate cash for not just the acquisition but for working capital and a drilling program,” said Newrange CEO Robert Archer on the purchase of the mine.
Great Panther however is now selling those same assets for US$750,000, with payment to occur in cash, subject to the approval from ongoing restructuring proceedings. The sale follows the company filing for creditor protection last month.
Great Panther has delisted from the TSX as a result of the filing.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
