Great Panther Mining Limited (TSX:GPR, NYSE:GPL) (Great Panther Mining Limited (TSX:GPR, NYSE:GPL), Great Panther Mining Limited (TSX:GPR, NYSE:GPL)) announced that it has inked a letter of intent to sell its Coricancha mine in Peru to Newrange Gold Corp. (TSX-V:NRG, OTCQB:NRGOF) (Newrange Gold Corp. (TSX-V:NRG, OTCQB:NRGOF), Newrange Gold Corp. (TSX-V:NRG, OTCQB:NRGOF))
The sale, which encompasses 100% of Great Panther’s Peruvian subsidiaries, Great Panther Silver Peru SAC and Great Panther Coricancha SAC, will net the Canadian mining company US$750,000 payable in cash.
Located in the central Andes of Peru, Coricancha is a past-producing mine with an extensive land package in the prolific Central Polymetallic Belt in Peru. The asset includes an operational 600 tonne per day mill, an underground mine and supporting infrastructure.
READ: Newrange Gold closes financing for Argosy and North Birch exploration, potential acquisition
Great Panther currently has the asset under care and maintenance.
Newrange told shareholders that it believes the proposed acquisition of Coricancha will give the company a renewed focus on mine site exploration, development and production.
In a statement from Newrange, CEO Robert Archer told investors he was "very excited about the opportunity" to acquire Coricancha.
"I believe the project presents an exceptional opportunity to build a significant resource, develop the known veins towards production and further explore the property," Archer said.
"Despite the long production history, there have only been 105 holes drilled on the property since 2010 and there is tremendous opportunity to extend the mine life and make new discoveries. In making this acquisition, Newrange is effectively following a well-established business model of bringing a past producing mine back into production, with the intent to supplement the future growth of the company out of cash flow rather than straight equity."
Completion of the transaction is subject to certain conditions including the completion of definitive documentation, completion of financing by Newrange, and Great Panther’s receipt of all necessary third-party consents and approvals, including the approval of its proposal trustee, the court in the company's proposal proceedings and, in the case of Newrange, the approval of the TSX Venture Exchange.
Vancouver-based Great Panther is a precious metals producer focused on the operation of the Tucano Gold Mine in Brazil, where it controls nearly 200,000 hectares in the prospective Vila Nova Greenstone belt.
Newrange, also based in Vancouver, is currently focused on district-scale exploration for precious metals in the prolific Red Lake district of northwestern Ontario. The past-producing high-grade Argosy gold mine is open to depth, while the adjacent North Birch project offers additional blue-sky potential.
--Updates with Newrange CEO statement--
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