Panoro Minerals Announces Receipt of Early Deposit Payment from Wheaton Precious Metals for the Cotabambas Project, Peru
Panoro Minerals Announces Receipt of Early Deposit Payment
from Wheaton Precious Metals for the Cotabambas Project, Peru
VANCOUVER, B.C., June 24, 2019 – Panoro Minerals Ltd. (TSXV: PML, Lima: PML, Frankfurt: PZM)
and its wholly-owned subsidiary, Panoro Trading (Cayman) Ltd. (“Panoro” or the “Company”) are pleased
to announce that they have received the eighth Early Deposit payment of US$750,000 as part of the
Precious Metals Purchase Agreement (the “Cotabambas Early Deposit Agreement”) with Wheato n
Precious Metals International Ltd. (“WPMI”), a wholly owned subsidiary of Wheaton Precious Metals
Corp. (TSX:WPM) (NYSE:WPM), in respect of the Cotabambas project located in Peru.
The principal terms of the Cotabambas Early Deposit Agreement are as descr ibed in the Company’s
press release on March 21, 2016, whereby WPMI will pay Panoro upfront cash payments totalling
US$140 million for 25% of the payable gold production and 100% of the payable silver production from
the Company’s Cotabambas Project in Per u. In addition, WPMI will make production payments to Panoro
of the lesser of the market price and US$450 per payable ounce of gold and US$5.90 per payable ounce
of silver delivered to WPMI over the life of the Cotabambas Project.
Panoro is entitled to rec eive US$14 million spread over a period of up to 9 years as an early deposit with
payments to be used to fund corporate expenses related to the Cotabambas Project. The Cotabambas
Early Deposit Agreement includes provisions to accelerate these payments thr ough WPMI’s matching, up
to certain limits, any third party financing by Panoro targeted for exploration at the Cotabambas Project.
The balance of the US$126 million, should WPMI elect to proceed with the Cotabambas Early Deposit
Agreement, is payable in instalments during construction of the Cotabambas Project.
Together with this payment, the total advanced to date is US$7.75 million, including the accelerated
tranche of US$2.0 million received in December 2016.
About Panoro
Panoro Minerals is a uniquel y positioned Peru focused copper exploration and development company .
The company is advancing its flagship project, Cotabambas Copper -Gold-Silver Project and its Antilla
Copper-Molybdenum Projects located in the strategically important area of sout hern Peru. The Company
also has a Joint Venture agreement with the Japanese Oil, Gas and Mineral Exploration Company
(JOGMEC) to advance its early stage Humamantata Copper Project and a partnership with Hudbay
Minerals Inc. at its Kusiorcco Copper Project where Panoro is to receive cash payments and a 2% NSR
royalty.
At the Cotabambas Project, the Company is focused on delineating the growth potential while optimizing
the project economics. Exploration and step -out drilling from 2017, 2018 and 2019 has id entified the
potential for both oxide and sulphide resource growth.
Summary of Cotabambas and Antilla Project Resources
Project Resource
Classification
Million
Tonnes
Cu (%) Au (g/t) Ag (g/t) Mo (%) CuEq
%
Cotabambas
Cu/Au/Ag
Indicated 117.1 0.42 0.23 2.74 0.001 0.59
Inferred 605.3 0.31 0.17 2.33 0.002 0.44
@ 0.20% CuEq cutoff, effective October 2013, Tetratech
Antilla Cu/Mo Indicated 291.8 0.34 - - 0.01 0.38
Inferred 90.5 0.26 - - 0.007 0.29
@ 0.175% CuEq cutoff, effective May 2016, Tetratech
Preliminary Economic Assessments (PEA) have been completed for both the Cotabambas and Antilla
Projects, the key results are summarized below.
Summary of Cotabambas and Antilla Project PEA Results
Key Project Parameters Cotabambas Cu/Au/Ag
Project1
Antilla Cu
Project2
Process Feed, life of mine million tonnes 483.1 118.7
Process Feed, daily Tonnes 80,000 20,000
Strip Ratio, life of mine 1.25 : 1 1.38: 1
Before
Tax1
NPV7.5% million USD 1,053 520
IRR % 20.4 34.7
Payback years 3.2 2.6
After
Tax1
NPV7.5% million USD 684 305
IRR % 16.7 25.9
Payback years 3.6 3.0
Annual
Average
Payable
Metals
Cu thousand tonnes 70.5 21.0
Au thousand ounces 95.1 -
Ag thousand ounces 1,018.4 -
Mo thousand tonnes - -
Initial Capital Cost million USD 1,530 250
1. Project economics estimated at commodity prices of; Cu = US$3.00/lb, Au = US$1,250/oz, Ag = US$18.50/oz, Mo =
US$12/lb
2. Project economics estimated at long term commodity price of Cu = US$3.05/lb and Short term commodity price of Cu =
US$3.20, US$3.15 and US$3.10 for Years 1,2 and 3 of operations, respectively.
The PEAs are considered preliminary in nature and include Inferred Mineral Resources that are
considered too speculative to have the economic considerations applied that would enable classification
as Mineral Reserves. There is no certainty that the conclusions within the updated PEA will be realized.
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
Luis Vela, a Qualified Person under National Instrument 43 -101, has reviewed and approved the scientific
and technical information in this press release.
On behalf of the Board of Panoro Minerals Ltd.
Luquman Shaheen. M.B.A., P.Eng, P.E.
President & CEO
FOR FURTHER INFORMATION, CONTACT:
Panoro Minerals Ltd.
Luquman Shaheen, President & CEO
Phone: 604.684.4246 Fax: 604.684.4200
Email: [email protected]
Web: www.panoro.com
Renmark Financial Communications Inc.
Melanie Barbeau
Tel.: (514) 939-3989
www.renmarkfinancial.com
CAUTION REGARDING FORWARD LOOKING STATEMENTS : Information and statements contained
in this news release that are not historical facts are “forward -looking information” within the meaning of
applicable Canadian securities legislation and involve risks and uncertainties.
Examples of forward -looking information and statements contained in this news release include
information and statements with respect to:
acceleration of payments by Wheaton Metals to match third party financing by Panoro targeted
for exploration at the Cotabambas Project;
payment by Wheaton Metals of US$140 million in installments;
Panoro weathering the current depressed equity and commodity markets, minimizin g dilution to
existing shareholders and making targeted investments into exploration at the Cotabambas
Project;
mineral resource estimates and assumptions;
the PEA, including, but not limited to, base case parameters and assumptions, forecasts of net
present value, internal rate of return and payback; and
copper concentrate grade from the Cotabambas Project.
Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or
projections set out in forward -looking information. In some instances, material assumptions and factors
are presented or discussed in this news release in connection with the statements or disclosure
containing the forward -looking information and statements. You are cautioned that the following li st of
material factors and assumptions is not exhaustive. The factors and assumptions include, but are not
limited to, assumptions concerning: metal prices and by -product credits; cut -off grades; short and long
term power prices; processing recovery rates; mine plans and production scheduling; process and
infrastructure design and implementation; accuracy of the estimation of operating and capital costs;
applicable tax and royalty rates; open-pit design; accuracy of mineral reserve and resource estimates an d
reserve and resource modeling; reliability of sampling and assay data; representativeness of
mineralization; accuracy of metallurgical test work; and amenability of upgrading and blending
mineralization.
Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other
factors which could cause actual events or results to differ materially from those expressed or implied by
the forward-looking statements, including, without limitation:
risks relating to metal price fluctuations;
risks relating to estimates of mineral resources, production, capital and operating costs,
decommissioning or reclamation expenses, proving to be inaccurate;
the inherent operational risks associated with mining and mineral exploration, development, mine
construction and operating activities, many of which are beyond Panoro’s control;
risks relating to Panoro’s ability to enforce Panoro’s legal rights under per mits or licenses or risk
that Panoro’s will become subject to litigation or arbitration that has an adverse outcome;
risks relating to Panoro’s p rojects being in Peru, including political, economic and regulatory
instability;
risks relating to the uncertainty of applications to obtain, extend or renew licenses and permits;
risks relating to potential challenges to Panoro’s right to explore and/or develop its projects;
risks relating to mineral resource estimates being based on interpretations and assumptions
which may result in less mineral production under actual circumstances;
risks relating to Panoro’s operations being subject to environmental and remediation
requirements, which may increase the cost of doing business and restrict Panoro’s operations;
risks relating to being adversely affected by environmental, safety and regulatory risks, including
increased regulatory burdens or delays and changes of law;
risks relating to inadequate insurance or inability to obtain insurance;
risks relating to the fact that Panoro’s properties are not yet in commercial production;
risks relating to fluctuations in foreign currency exchange rates, interest rates and tax rates; and
risks relating to Panoro’s ability to raise funding to contin ue its exploration, development and
mining activities.
This list is not exhaustive of the factors that may affect the forward -looking information and statements
contained in this news release. Should one or more of these risks and uncertainties materializ e, or
should underlying assumptions prove incorrect, actual results may vary materially from those described in
the forward-looking information. The forward -looking information contained in this news release is based
on beliefs, expectations and opinions as of the date of this news release. For the reasons set forth
above, readers are cautioned not to place undue reliance on forward -looking information. Panoro does
not undertake to update any forward -looking information and statements included herein, ex cept in
accordance with applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.