Panoro Minerals Announces Receipt of Early Deposit Payment from Wheaton Precious Metals for the Cotabambas Project, Peru
October 17 2017 - 2:46PM
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 fifth 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”) (formerly Silver Wheaton (Caymans)
Ltd.), a wholly owned subsidiary of Wheaton Precious Metals Corp.
(formerly Silver Wheaton 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 Cotabambas Early Deposit Agreement
includes provisions to accelerate these payments through WPMI’s
matching, up to certain limits, any third party financing by Panoro
targeted for exploration at the Cotabambas Project completed before
the second anniversary of the Cotabambas Early Deposit
Agreement. This acceleration could result in total early
deposit payments of up to US$7 million being made to Panoro in the
first two years of the agreement. 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$5.5 million, including the accelerated tranche of
US$2.0 million received in December 2016.
About Panoro
Panoro Minerals 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. The company is well financed to expand, enhance and advance
its projects in the region where infrastructure such as railway,
roads, ports, water supply, power generation and transmission are
readily available and expanding quickly. The region boasts
the recent investment of over $US 15 billion into the construction
or expansion of four large open pit copper mines.
Since 2007, the Company has completed over
70,000 m of exploration drilling at these two key projects leading
to substantial increases in the mineral resource base for each, as
summarized in the table below.
Summary of Cotabambas and Antilla
Project Resources
Project |
ResourceClassification |
Milliontonnes |
Cu (%) |
Au (g/t) |
Ag (g/t) |
Mo (%) |
Cotabambas Cu/Au/Ag |
Indicated |
117.1 |
0.42 |
0.23 |
2.74 |
0.001 |
Inferred |
605.3 |
0.31 |
0.17 |
2.33 |
0.002 |
@ 0.20% Cueq cutoff, effective October 2013,
Tetratech |
Antilla Cu/Mo |
Indicated |
291.8 |
0.34 |
- |
- |
0.01 |
Inferred |
90.5 |
0.26 |
- |
- |
0.007 |
@ 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 |
Antilla Cu/Mo Project |
Mill Feed, life of mine |
Million tonnes |
483.1 |
350.4 |
Mill Feed grade, life of mine |
% Cu |
0.32 |
0.31 |
g/t Au |
0.18 |
- |
g/t Ag |
2.37 |
- |
% Mo |
- |
0.009 |
Mill Feed, daily |
tonnes |
80,000 |
40,000 |
Strip Ratio, life of mine |
|
1.25 : 1 |
0.85 : 1 |
BeforeTax1 |
NPV7.5% |
Million USD |
1,053 |
491 |
IRR |
% |
20.4 |
22.2 |
Payback |
years |
3.2 |
3.3 |
After Tax1 |
NPV7.5% |
Million USD |
684 |
225 |
IRR |
% |
16.7 |
15.1 |
Payback |
years |
3.6 |
4.1 |
Annual Average PayableMetals |
Cu |
Thousand tonnes |
70.5 |
36.8 |
Au |
Thousand ounces |
95.1 |
- |
Ag |
Thousand ounces |
1,018.4 |
- |
Mo |
Thousand tonnes |
- |
0.9 |
Initial Capital Cost |
Million USD |
1,530 |
603 |
Project economics estimated at commodity prices of; Cu
= $US3.00/lb, Au = $US1,250/oz, Ag = $US18.50/oz, Mo =
$US12/lb |
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 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 A. Shaheen, M.B.A., P.Eng., P.E.President & CEO
FOR FURTHER INFORMATION, CONTACT:
Panoro Minerals
Ltd.Luquman A. Shaheen, President & CEO
Phone: 604.684.4246 Email: info@panoro.com Web:
www.panoro.com |
Renmark Financial Communications Inc. Laura Welsh
Tel.: (416) 644-2020 or (416) 939-3989blwelsh@renmarkfinancial.com
Web: 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, 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;
- 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.
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