Vancouver, B.C., January 27, 2016 – Panoro Minerals Ltd. (TSXV: PML, Lima: PML, Frankfurt: PZM) is pleased to announce that it has entered into a nonbinding term sheet for a precious metals purchase agreement with Silver Wheaton (Caymans) Ltd. (“Silver Wheaton”), a wholly-owned subsidiary of Silver Wheaton Corp. (TSX: SLW) (NYSE: SLW), under which Silver Wheaton will pay Panoro upfront cash payments totalling US$140 million for 25% of the payable gold production and 100% of the payable silver production from the Company’s Cotabambas Project in Peru. In addition, Silver Wheaton will make production payments to Panoro of the lesser of the market price and US$450 per payable ounce of gold and US$5.90 per payable ounce of silver delivered to Silver Wheaton over the life of the Cotabambas Project.
Panoro is entitled to receive US$14 million spread over up to 9 years as an early deposit with payments to be used to fund corporate expenses related to the Cotabambas Project. The financing includes provisions to accelerate these payments through Silver Wheaton’s matching, up to certain limits, any third party financing by Panoro targeted for exploration at the Cotabambas Project. The acceleration could result in early deposit payments of up to US$7 million being made to Panoro in the first two years of the agreement. The balance of the US$140 million is payable in instalments during construction of the Cotabambas Project.
The precious metals stream has received Board approval from both Panoro Minerals and Silver Wheaton. The transaction is expected to close in February 2016 and is subject to negotiation of a definitive Precious Metals Purchase Agreement (“PMPA”) and customary closing conditions.
Panoro’s President & CEO, Luquman Shaheen, states “This financing will be another key milestone for the Cotabambas Project. The partnership with Silver Wheaton is an important non-dilutive financing and also a significant validation of the technical and economic merits of the Project. Attracting this important strategic financing will allow Panoro to weather the current depressed equity and commodity markets, minimize dilution to existing shareholders and allow the Company to make targeted investments into exploration at the Cotabambas Project.”
Panoro’s financial advisor with regard to the transaction is Macquarie Capital Markets Canada Ltd. and Borden Ladner Gervais LLP is Panoro’s legal advisor.
Panoro y Silver Wheaton firmaron acuerdo clave por proyecto minero Cotabambas
La junior Panoro Minerals anunció un acuerdo con Silver Wheaton para una venta anticipada de oro y plata de su proyecto Cotabambas a cambio de 140 millones de dólares