Pan American Silver (PAAS) has successfully completed the previously announced divestment of its 56.25% stake in the MARA project in Argentina and its 92.3% ownership in the Morococha mine in Peru. These divestments align with Pan American’s strategic goal of optimizing its portfolio after acquiring Yamana Gold. The transactions will lead to a reduction in the company’s annual costs related to project development, reclamation, and care and maintenance. For the MARA project and Morococha, these costs amounted to $15.7 million in the second quarter of 2023.
In the MARA sale, Glencore International paid $475 million in cash and granted Pan American a 0.75% life-of-mine copper net smelter return royalty. Glencore now holds 100% ownership of the MARA project. In the Morococha sale, Alpayana S.A. paid $25 million in cash for the 92.3% interest in Compania Minera Argentum S.A., Pan American’s Peruvian subsidiary that owned the Morococha mine. The sale of Pan American’s 57.74% interest in Agua de la Falda S.A. is expected to be completed in the fourth quarter of 2023.