Just under a month after it reached a definitive agreement to sell its Peruvian assets, it appears Great Panther Mining has lost the sale. The firm this morning indicated it has terminated the share purchase agreement it previously entered into with Newrange Gold Corp (TSXV: NRG).
Under the terms of the arrangement, Newrange was to acquire Great Panther Peru Holdings and Great Panther Silver Peru SAC, which holds the Coricancha property and mine, the latter of which has been on care and maintenance since prior to its purchase by Great Panther in 2017. At the time of purchase, the company had expected production to begin in the second half of 2018, producing up to 3.0 million silver equivalent ounces per year.
The transaction was set to see Great Panther receive US$750,000 in cash for the assets, subject to approvals and evidence of sufficient financing to support the transaction. The latter appears to be the reason for the transaction falling through.
READ: Great Panther Mining To File For Creditor Protection
“We have been working on this acquisition since March and believe strongly in the potential of the Coricancha Mine. However, the current market for mining stocks, one of the worst in decades, has created a serious impediment to financing, especially for new acquisitions. While we attempted to gain an extension to the closing date, the intransigence of Great Panther’s creditors has, regrettably, made that impossible,” commented Newrange CEO Robert Archer.
Newrange had previously attempted to raise proceeds of $10.0 million in connection with the transaction, while conducting a concurrent share consolidation on a one for six basis.
It is unclear at this time what will come of Great Panther’s Peruvian assets following the sale falling through.
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.
