Pan American Silver to sell La Arena Gold mines for to Zijin Mining

Pan American Silver has announced it would sell its 100% interest in La Arena S.A., which owns the La Arena gold mine as well as the La Arena II project in Peru, to Zijin Mining Group for $245 million cash upfront and a $50 million contingent payment.

The La Arena property is located in the La Libertad province of Peru and is comprised of the La Arena gold mine and the La Arena II project. Since acquiring the mine from Tahoe Resources Inc. in 2019, Pan American said it has added 535,521 ounces of gold through exploration, and extended the mine life from 2021 to 2026.

Zijin is a top ten miner. Earlier this year it paid Solaris Resources C$130 million for a 15% stake in Solaris.