Vancouver-headquartered Trevali has closed the transaction with Cerro De Pasco Resources (CDPR) to sell its Santander mine, in Peru.
The TSX-listed miner said on Friday it had received ten-million shares of CDPR, C$1-million in cash and a 1% net smelter return royalty on certain areas of the mine site.
The divesture of Santander forms part of Trevali’s focus on disciplined capital allocation, corporate debt reduction and development of the RP2.0 expansion project at Rosh Pinah, in Namibia.
CDPR previously said that the acquisition of Santander would be transformational for the company. The mine’s 2021 guidance is 50-million to 55-million pounds of payable zinc, four-million pounds of payable lead and 282 000 oz to 297 000 oz of payable silver at an all-in sustaining cost of $1.08/lb to $1.14/lb payable zinc.