The sell off of assets has begun for Great Panther Mining (TSX: GPR) following the firm filing for creditor protection last week. The company this morning revealed it has entered into a non-binding letter of intent to sell off certain Peruvian assets.
The transaction will see the firm sell the Coricancha Mine, a past producing polymetallic property found in the Central Polymetallic Belt. The mine was originally purchased by Great panther in 2017, whom at the time indicated it wanted to put the property back into production by the second half of 2018. Mining at Coricancha was placed into care and maintenance in August 2013.
At the time of purchase, the firm indicated full production could amount to up to 3 million silver equivalent ounces on an annual basis. Despite the claim, the property was purchased for just US$100,000 from Nyrstar, in addition to 15% of the firms free cash flow of up to a maximum of $10 million.
The mine is believed to have measured and indicated resources of 752,759 tonnes, at 5.8 g/t gold, 200 g/t silver, 2.06% lead, 3.26% zinc and 0.53% copper. Inferred resources consists of 943,160 tonnes of 5.0 g/t gold, 209 g/t silver, 1.45% lead, 3.25% zinc, and 0.64% copper.
The assets are to be sold to Newrange Gold Corp under a non-binding letter of intent, with the property to be sold for US$750,000. The sale includes the mine, which is in care and maintenance, as well as a 600 tpd mill, and support infrastructure. A timeline for closing was not provided, although the sale is said to be subject to a financing as well as several regulatory approvals.
Great Panther Mining last traded at $1.09 on the TSX and is expected to be delisted in the near term in connection with its filing for creditor protection.
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.
