Pan American Silver Corp. (TSX:T.PAA, Stock Forum) said it has sold 100% of its Quiruvilca silver mine operation, located in the northern Andean region of Peru, to a subsidiary of Southern Peaks Mining L.P.
The Purchaser has agreed to pay $2 million, subject to certain adjustments, in exchange for 100% of the assets and the assumption of all liabilities of Quiruvilca. In addition to the cash payment, the Purchaser will also pay to Pan American on a quarterly basis.
Pan American anticipates that the sale of Quiruvilca will result in a net gain to Pan American of approximately $11.3 million on the disposition of the mine's assets and liabilities.
The company cited the increasingly high cost of running the mine as the reason for selling the property.
Pan American Silver has seven operating mines in Mexico, Peru, Argentina and Bolivia, including the recently-acquired Dolores gold/silver mine in Chihuahua, Mexico.
On Tuesday, Pan American was selling for $17.20 a share. The company has a market cap of $2.7 billion, based on $153.8 million shares outstanding. The 52-week high and low was $34.26 and $14.97 respectively.