06:17 AM EDT, 05/01/2024 (MT Newswires) -- Pan American Silver ( PAAS ) said earlier on Wednesday that it signed an agreement to sell its 100% interest in La Arena, which owns the La Arena gold mine and the La Arena II project in Peru, to Jinteng (Singapore) Mining Pte., a subsidiary of Zijin Mining Group, for US$245 million ($337.5 million) cash upfront and a US$50 million contingent payment.

At closing, Zijin will also grant Pan American a life-of-mine gold net smelter return royalty of 1.5% for the La Arena II project.

Pan American expects the deal to close in the third quarter.