Triple Flag Precious Metals Corp (TSE: TFPM) (NYSE: TFPM) (FRA: 3Y0) has scooped a piece of the Peruvian precious metals pie by acquiring a pair of gold and silver streams for US$35 million.
These Latin American streams are coming from the country’s Arcata and Azuca projects owned by the Lima-based private mining operator Sierra Sun. This organization just acquired the operations from Hochschild Mining Plc (LON: HOC) (OTCMKTS: HCHDF) (FRA: H3M).
“We believe that Arcata and Azuca [the mine and neighbouring deposit] are exciting precious metals restart and development opportunities, respectively, with excellent exploration upside,” chief executive Sheldon Vanderkooy said. Production at the Arcata operation has been suspended since 2019 for maintenance and care.
Triple Flag will have the option to purchase 5 per cent of the metals from the assets, which are collectively expected to have a decade-long life once things pick back up in Q3. This will begin with the restart of underground mining at Arcata. The Azuca deposit won’t start producing gold and silver for another four years.
“The sale of both assets is part of Hochschild’s strategy to concentrate on its core assets in Peru: the Inmaculada mine and the Pallancata-Royropata project,” Hochschild specified in a release, “as well as its assets in Brazil and Argentina.”
The Arcata plant. Photo credit: Triple Flag Precious Metals
Read more: Equinox Gold acquires Calibre Mining for $2.6B
Read more: Calibre Mining beats updated gold production guidance with 242,487 ounces
Peruvian delegation makes appearance at PDAC
The nation’s mining minister Jorge Montero and colleagues just stopped by the world’s largest mining conference to promote mineral exploration and shmooze with investors.
“In Peru, we have had US$5 billion of mining investment every year for a decade,” Montero said, adding that this dollar figure should double considering the country’s mining potential.
Peru is renowned for being a leading Latin American gold producer alongside Mexico. It is also one of the world’s top silver miners.
The Yanacocha mine run by Newmont Corporation (TSE: NGT) (NYSE: NEM) (FRA: NMM) is the second largest gold asset in Latin America.
Nicaragua, another Spanish-speaking nation in Central America, is a rich source of precious metals too. Companies like Calibre Mining Corp (TSE: CXB) (OTCMKTS: CXBMF) and Condor Gold have been capitalizing on its vast reserves for years now. Condor was recently acquired by Metals Exploration Plc (LON: MTL).
Calibre Mining is a sponsor of Mugglehead news coverage
rowan@mugglehead.com
