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
,
April 4, 2022
/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 fourteenth 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.
The total advanced to date is
US$12.25 million
from WPMI, including the accelerated tranche of
US$2.0 million
received in
December 2016
.
Together with the receipt of this payment from WPMI, Panoro has received a total of CA$13.9 million of funding
since December of 2021. The funding has been sourced from several strategic transactions including:
Antilla Project sale, first scheduled payment (CA$10.0 million);
Kusiorcco Project sale, final scheduled payment (CA$1.9 million);
Regional Exploration Cooperation Agreements (CA$1.1 million); and
The WPMI Early Advance Payment #14 above (CA$0.9 million).
Panoro is pleased to demonstrate to investors the Company's ability to finance the Cotabambas Project while
avoiding share capital dilution. The Company estimates additional $CA 12.4 million of funding proceeds for 2022
and 2023.
The proceeds will be used to advance the Cotabambas Project pre-feasibility study ("PFS"). The infill and step out
drilling program to support the PFS is scheduled to commence mobilization shortly. Panoro is also evaluating
independent, internationally recognized consulting engineering firms to commence the technical studies to support
the Cotabambas PFS.
Luquman Shaheen, President & CEO, stated, "We are very happy with the partnership Panoro has formed with
WPMI to advance the Cotabambas Project. The Cotabambas Early Deposit Agreement with WPMI has provided
capital to advance Cotabambas, while at the same time demonstrating the strength of the project. Panoro's
relationship with WPMI, together with Panoro's two strategic shareholders, Hudbay Minerals (
Canada
) and
Antofagasta Minerals (
Chile
), provides strategic options to finance the future development of Cotabambas.
Panoro is focused on executing on the PFS."
About Panoro
Panoro is a uniquely positioned
Peru
-focused copper development company. The Company is advancing its
flagship Cotabambas Copper-Gold-Silver Project located in the strategically important area of southern
Peru
.
The Company's objective is to complete a Prefeasibility study in 2023 with work programs commencing in Q1
2022.
At the Cotabambas Project, the Company will first focus on delineating resource growth potential and optimizing
metallurgical recoveries. These objectives are expected to further enhance the project economics as part of the
Prefeasibility studies during 2022 and 2023. Exploration and step-out drilling from 2017, 2018 and 2019 have
already identified the potential for both oxide and sulphide resource growth.
Summary of Cotabambas Project Resources
Project
Resource
Classification
Million
Tonnes
Cu (%)
Au (g/t)
Ag (g/t)
Mo (%)
CuEq
%
Cotabambas
1
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
1.
Cotabambas Project, Apurimac, Peru, NI 43-101 Technical Report on Updated Preliminary Economic Assessment, amec foster wheeler and Moose Mountain Technical Services, 22 September 2015
A PEA has been completed for the Cotabambas Project, the key results are summarized below:
Summary of Cotabambas Project PEA Results
Key Project Parameters
Cotabambas Cu/Au/Ag Project1
Process Feed, life of mine
million tonnes
483.1
Process Feed, daily
tonnes
80,000
Strip Ratio, life of mine
1.25 : 1
Before
Tax
1
NPV
7.5%
million US$
1,053
IRR
%
20.4
Payback
years
3.2
After
Tax
1
NPV
7.5%
million US$
684
IRR
%
16.7
Payback
years
3.6
Annual Average Payable
Metals
Cu
thousand tonnes
70.5
Au
thousand ounces
95.1
Ag
thousand ounces
1,018.4
Mo
thousand tonnes
-
Initial Capital Cost
million US$
1,530
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
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 PEAs 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:
Panoro delineating growth potential at the Cotabambas Project, while optimizing project economics;
mineral resource estimates and assumptions; and
the PEAs, including, but not limited to, base case parameters and assumptions, forecasts of net present
value, internal rate of return and payback.
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 or its partners' ability to enforce legal rights under permits or licenses or risk that
Panoro or its partners will become subject to litigation or arbitration that has an adverse outcome
risks relating to Panoro's or its partners' 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 or its partners' right to explore or develop 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 or its partners' operations being subject to environmental and remediation
requirements, which may increase the cost of doing business and restrict 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 and its partners' properties are not yet in commercial production;
risks relating to fluctuations in foreign currency exchange rates, interest rates and tax rates
risks relating to Panoro's ability to raise funding to continue its exploration, development, and mining activities;
and
counterparty risk under Panoro's agreements.
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 r
elease.
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; Renmark Financial Communications Inc.,
Scott Logan, Account Manager, Phone: 416.644.2020 / 212.812.7680, Email: [email protected],
Web: www.renmarkfinancial.com
CO: Panoro Minerals Ltd.
CNW 16:00e 04-APR-22