08:40 AM EDT, 10/24/2025 (MT Newswires) -- Pan American Silver ( PAAS ) and its unit Aquiline Resources have agreed to sell the owner of the Peru-based Pico Machay gold project, Minera Calipuy, to Xali Gold for $17.5 million, the latter said Friday.

Xali Gold said Pico Machay is a high-sulphidation gold deposit with a historical measured and indicated resource of 264,600 ounces of gold and an additional inferred resource of 446,000 ounces.

The company said it plans to update the resource estimate, review prior engineering studies, and assess exploration targets for expansion.

Under the share purchase agreement, Xali Gold will pay Pan American and Aquiline $17.5 million in installments over five years, with an additional $2.5 million payable if at least 1.25 million ounces of gold are delineated, according to Xali Gold.