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, BC
,
March 31, 2021
/CNW/ -
Panoro Minerals Ltd.
(TSXV: PML) (Lima: PML)
(Frankfurt: PZM) (OTCQB: POROF) and its wholly-owned subsidiary, Panoro Trading (Cayman)
Ltd. ("Panoro" or the "Company") are pleased to announce that they have received the twelfth Early
Deposit payment of
US$750,000
as part of the Precious Metals 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 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$10.75 million
, including the accelerated
tranche of
US$2.0 million
received in
December 2016
.
About Panoro
Panoro is a uniquely positioned
Peru
focused copper exploration and development company. The
Company is advancing its flagship project, Cotabambas Copper-Gold-Silver Project and its Antilla
Copper-Molybdenum Projects located in the strategically important area of southern
Peru
.
Panoro has completed strategic partnerships at four of its projects:
1
.
Precious Metals Purchase Agreement with Wheaton Precious Metals at the Cotabambas
Project;
2
.
Joint Venture with JOGMEC at the Humamantata Project;
3
.
Sale to Hudbay Minerals of the Kusiorcco Project for cash and NSR royalty; and
4
.
Sale to Mintania of the Cochasayhuas Project for cash and NSR royalty.
These partnerships would provide, if all received,
US$ 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
identified 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 Project
1
Antilla Cu
Project
2
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
Tax
1
NPV
7.5%
million USD
1,053
520
IRR
%
20.4
34.7
Payback
years
3.2
2.6
After
Tax
1
NPV
7.5%
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
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 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 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 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 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 projects 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 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
materialize, 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, 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.
SOURCE
Panoro Minerals Ltd.
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For further information:
Panoro Minerals Ltd., Luquman Shaheen, President & CEO, Phone:
604.684.4246, Fax: 604.684.4200, Email: [email protected], Web: www.panoro.com
CO: Panoro Minerals Ltd.
CNW 16:18e 31-MAR-21