CDPR already owns the Excelsior stock pile, which it says is the "largest above-ground mineralised resources in the world".
One of the oldest and largest polymetallic mines in the world, operating for almost 400 years, Cerro de Pasco is changing hands.
CSE-listed Cerro de Pasco Resources (CDPR) announced on Thursday that it would buy the companies that own the mining and processing assets comprising the complex in central Peru from Volcan Compañia Minera for $30-million in cash, a variable consideration and a net smelter royalty.
CDPR would acquire all the issued shares of Oxidos de Pasco, Empresa Administradora de Cerro and Remediadora Ambiental.
The assets include the 2 500 t/d Oxidos precious metals leach processing facility, the 17 500 t/d Paragsha base and precious metals concentrator, the 1 800 t/d San Expedito base and precious metals concentrator, the Santa Rosa oxide openpit that hosts minerals for processing through the Oxidos plant, the Raul Rojas sulphide openpit, the Lourdes and Excelsior underground shafts, all associated surface infrastructure including the Ocroyoc tailings storage facility, offices, workshops, staff accommodation and more than 12 000 ha of exploitation and exploration concessions that host existing porphyry exploration potential.
CDPR already acquired the mineral rights on the Excelsior mineral pile and the Quiulacocha tailings on the El Metalurgista mining concession, and plans to complete a 43-101 resource calculation in the near future.
Volcan will have an offtake in respect of 100% of all zinc and lead concentrates from ore resources owned by Cerro, as well as a right of first refusal to purchase all concentrates produced from CDPR's El Metalurgista concessions.
The transaction is expected to close before the end of March 2020