Le Lézard
Classified in: Mining industry
Subjects: MISCELLANEOUS, MISCELLANEOUS

Panoro Minerals Announces Receipt of Early Deposit Payment from Wheaton Precious Metals for the Cotabambas Project, Peru



VANCOUVER, British Columbia, Sept. 25, 2018 (GLOBE NEWSWIRE) -- 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 seventh 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 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.  The balance of the US$126 million; should WPMI elect to proceed with the Cotabambas Early Deposit Agreement, is payable in installments during construction of the Cotabambas Project.

Together with this payment, the total advanced to date is US$7.0 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 Project, both 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 80,000 meters 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

ProjectResource
Classification
Million
Tonnes
Cu (%)Au (g/t)Ag (g/t)Mo (%)
Cotabambas Cu/Au/AgIndicated117.10.420.232.740.001
Inferred605.30.310.172.330.002
@ 0.20% CuEq cutoff, effective October 2013, Tetratech
Antilla Cu/MoIndicated291.80.34--0.01
Inferred90.50.26--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
Project1
Antilla Cu
 Project2
Process Feed, life of minemillion tonnes483.1118.7
Process Feed, dailyTonnes80,00020,000
Strip Ratio, life of mine 1.25 : 11.38 : 1
Before
Tax1
NPV7.5%million USD1,053520
IRR%20.434.7
Paybackyears3.22.6
After
Tax1
NPV7.5%million USD684305
IRR%16.725.9
Paybackyears3.63.0
Annual
Average
Payable
Metals
Cuthousand tonnes70.521.0
Authousand ounces95.1-
Agthousand ounces1,018.4-
Mothousand tonnes--
Initial Capital Costmillion USD1,530250
  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 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) 939-3989
blwelsh@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:

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:

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.


These press releases may also interest you

20 oct 2018
CHICAGO, Oct. 20, 2018 /PRNewswire-PRWeb/ -- The BM International Builders is optimistic about meeting the demand of the construction sector with the last quarter of the year coming to a close. "We are committed to contributing to the demands of the...

19 oct 2018
Damara Gold Corp. announces that it has entered into an amending agreement (the "Amending Agreement") amending the terms of the business combination agreement dated September 5, 2018 (the "Business Combination Agreement") between Damara, 2651996...

19 oct 2018
Rusoro Mining Ltd. (the "Company" or "Rusoro") announces that it has executed a settlement agreement ("Settlement Agreement") with the Bolivarian Republic of Venezuela ("Venezuela") by which Venezuela agrees to pay Rusoro over US$1.28 billion to...

19 oct 2018
The "ADC Contract Manufacturing Market (3rd Edition), 2018-2030" report has been added to ResearchAndMarkets.com's offering. The ADC Contract Manufacturing Market (3rd edition), 2018-2030 report offers a comprehensive study of the current scenario...

19 oct 2018
Pacton Gold Inc. (the "Company" or "Pacton") is pleased to announce the first discovery of gold nuggets on the Golden Palms property (E 47/3810), (Figures 1 & 2). The nuggets were discovered by a prospecting crew working in advance of a geological...

19 oct 2018
Kingold Jewelry, Inc. ("Kingold" or "the Company") , one of China's leading manufacturers and designers of high quality 24-karat gold jewelry, ornaments and investment-oriented products, today announced that the Company will hold its 2018 Annual...




News published on 25 september 2018 at 16:33 and distributed by: