Below the deal, Santacruz pays an preliminary $20 million in money when the transaction closes, and one other $90 million over a four-year interval, and Glencore can be granted a 1.5% internet smelter return (NSR) royalty on the belongings.
Santacruz says the belongings it’s buying from Glencore, on a 100% foundation, produced 6.4 million oz. silver-equivalent through the 9 months ended on September 30.
Silver producer within the Americas
Arturo Prestamo Elizondo, Santacruz’s government chairman and interim chief monetary officer, mentioned the acquisition creates a number one mid-tier silver producer within the Americas. “The transaction represents a novel alternative to considerably improve our portfolio of operations — it’s extremely accretive on all key metrics and the transaction construction permits the corporate to finance nearly all of the acquisition by way of the money movement generated by these belongings,” he acknowledged in a press launch. “Santacruz shareholders will take part in a bigger, extra various silver producer with sturdy manufacturing progress and enhanced money movement profile.”
Santacruz’s CEO, Carlos Silva, famous that Glencore “has carried out extraordinary work on these belongings whereas attaining very excessive requirements when it comes to accountable mining practices and their dedication to accountable enterprise and neighborhood relations.”
Glencore’s 45%-owned Bolivar underground silver-zinc-lead mine in Antequera, close to town of Oruro. A 1,200 tonnes per day processing plant produces zinc, lead and silver concentrates. It’s 45%-owned Porco mine, 50 km west of town of Potosi, has two underground mines (Central and Hundimiento), and a 1,200 tonnes per day concentrator plant.
Caballo Blanco, 100%-owned by Glencore, consists of three working mines—Colquechaquita, Tres Amigos and Reserva—which provide the 1,000 tonne-per-day Don Diego processing plant, and produces zinc-silver and lead-silver concentrates. The advanced additionally consists of thermo and hydroelectric energy technology amenities. Colquechaquita has been in manufacturing since 1988, and Tres Amigos and Reserva since 1996.
Glencore’s 100%-owned Soracaya is a greenfield venture in Potosi located 4.4 km alongside strike from Pan American Silver’s San Vicente mine, and its 100%-owned San Lucas ore sourcing and buying and selling enterprise was arrange in 2017. The enterprise generates most of its income by sourcing ore from third events and processing it at crops at Bolivar, Porco and Caballo Blanco.
(This text first appeared in The Northern Miner)