Pan American Silver Completes Divestment Of MARA And Morococha - Quick Facts

(RTTNews) - Pan American Silver Corp. (PAAS, PAAS.TO) has completed the divestment of its 56.25% interest in the MARA project in Argentina and its 92.3% interest in the Morococha mine in Peru. The company said the transactions will allow it to reduce annual project development, reclamation and care and maintenance costs.

Under the terms of the MARA sale, Glencore International AG paid $475 million, in cash and granted to Pan American a life-of-mine copper net smelter return royalty of 0.75%, with the right for Pan American to freely transfer the royalty. Glencore has assumed 100% ownership of the MARA project.

Under the terms of the agreement for the Morococha sale, Alpayana S.A. paid $25 million in cash for the 92.3% interest in Compaia Minera Argentum S.A., Pan American's Peruvian subsidiary that owned the Morococha mine.