07:46 AM EDT, 10/24/2025 (MT Newswires) -- Xali Gold ( CGDXF ) said Friday that it agreed to acquire Minera Calipuy, owner of the Pico Machay gold project in Peru, from Pan American Silver ( PAAS ) .

Consideration comprises cash payments totaling US$17.5 million over five years.

Pico Machay has a historic measured and indicated resource of 264,600 ounces of gold and an additional historic inferred resource of 446,000 ounces of gold.

"The current stronger gold price environment provides us with many opportunities to upgrade the project and evaluate additional production alternatives that may not have been supported by lower gold prices," chief executive officer Joanne Freeze said.

Xali said its work on the project will focus on updating the resource estimate and previous engineering studies, while also testing exploration targets for potential resource expansion.