Panoro Minerals Announces Receipt of Early Deposit Payment from Wheaton Precious Metals for the Cotabambas Project, Peru and Issuance of Common Shares
Panoro Minerals Announces Receipt of Early Deposit Payment
from Wheaton Precious Metals for the Cotabambas Project, Peru and Issuance of Common Shares
VANCOUVER, B.C., September 23, 2020 – 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 eleventh Early Deposit payment of US$750,000 as part of
the Precious Metal s Purchase Agreement (the “Cotabambas Early Deposit Agreement”) with Wheaton
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 described 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 Peru. 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 receive 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 balance of t he
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$10.0 million, including the accelerated tranche
of US$2.0 million received in December 2016.
Issuance of common shares
The Company also announces that, pursuant to the amended employment agreement (“Amendment
Agreement”) between the Company and the Company’s Chief Execu tive Officer, which defines a portion of
his remuneration to be satisfied by the issuance of common shares of the Company on a quarterly basis,
until December 31, 2020. Pursuant to the terms of the Amendment Agreement, 132,133 common shares
will be issued at a deemed price of $0.133, in consideration of certain services provided to the Company for
the quarterly period from June 1, 2020 to August 31, 2020, using the volume weighted average closing price
of the Company’s shares for each of the trading days in the three month period immediately preceding the
end of each such quarterly period . The shares are subject to a four -month hold period and may not be
traded until January 19, 2021. The deemed price of the common shares to be issued for future quarterly
periods will be determined after the end of each quarterly period, subject to Exchange approval, as such
services are provided to the Company, and will also be subject to a four-month hold period.
About Panoro
Panoro is a uniquely positioned Peru focused copper exploration and development company . The Company
is advancing its flagship project, Cotabambas Copper -Gold-Silver Project and its Antilla Copper -
Molybdenum Projects located in the strategically important area of southern Peru.
Panoro has completed strategic partnerships at four of its projects:
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1. Precious Metals Purchase Agreement with Wheaton Precious Metals at the Cotabambas Project;
2. Joint Venture with JOGMEC at the Humamantata Project;
3. Sale to Hudbay Minerals of the Kusiorcco Project for cash and NSR royalty; and
4. Sale to Mintania of the Cochasayhuas Project for cash and NSR royalty.
These partnerships would provide, if all received, US$ 15.5 million of funding to Panoro from 2020 to 2024 ,
not including the potential NSR royalties from the Kusiorcco and Cochasayhuas Projects.
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 i dentified 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.
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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
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, minimizing 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 list 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 rec overy 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 and 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 subjec t 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 explora tion, 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 permits 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;
4 | Sep. 23, 2020 PR
• risks relating to mineral resource estimates being based on interp retations 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 t o continue 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 ma terialize, 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 o pinions 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 he rein, except 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.