06:26 AM EST, 12/03/2024 (MT Newswires) -- Pan American Silver ( PAAS ) on Tuesday said it completed the sale of a 100% stake in La Arena S.A., which owns the La Arena gold mine and the La Arena II project in Peru.

The buyer, Zijin Mining Group subsidiary Jinteng (Singapore) Mining, paid US$245 million in cash and granted Pan American a life-of-mine gold net smelter return royalty of 1.5% for the La Arena II project.

Pan American will also receive an additional contingent payment of US$50 million in cash from Zijin at the start of commercial production from La Arena II.

As part of the government of Canada's approval under the Investment Canada Act, Pan American and La Arena agreed to an offtake agreement for La Arena II allowing Pan American to secure up to 60% of the future copper concentrate supply from the project on commercial terms for sale in North American markets.