06:02 AM EDT, 05/01/2024 (MT Newswires) -- Pan American Silver ( PAAS ) said Wednesday it has agreed to sell its La Arena subsidiary and related Peru gold mine projects to Jinteng (Singapore) Mining, a unit of Zijin Mining Group, for $245 million in cash and a $50 million contingent payment.

Under the terms of the deal, Zijin will pay $245 million in cash at closing. It will also grant Pan American a life-of-mine gold net smelter return royalty of 1.5% for the La Arena II project.

The transaction, subject to customary conditions and regulatory approvals. Is expected to close in Q3.

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Pan American Silver ( PAAS ) President and Chief Executive Michael Steinmann said the sale will strengthen the company's finances, allow it to seek other investments, reduce debt, and return capital to shareholders.

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