Nexa sells second Peruvian subsidiary in less than a week

Brazil's Nexa Resources announced the sale of Peruvian subsidiary Minera Pampa de Cobre to Quilla Resources Perú Metals for US$5mn plus another US$11mn subject to conditions and an NSR royalty.

The transaction is expected to be completed at the end of December, Nexa said in a statement sent to Peru's securities regulator SMV.

According to Nexa – part of the Votorantim group – Pampa de Cobre owns the Chapi copper mine in Moquegua region, where operations stopped in 2013. The company says the deposit has the capacity to produce up to 10,000t/y copper but is currently under care and maintenance.

The sale is Nexa's second in less than a week, and is part of the Brazilian company's plan to optimize its project portfolio and improve its cash flow.

On September 4, Nexa announced the sale of Minera Cerro Colorado to Canada’s Olympic Precious Metals for US$4.3mn million plus US$25mn subject to the fulfillment of certain milestones. The latter is the owner of the Pukaqaqa copper exploration project valued at US$655mn, according to the energy and mines ministry (Minem).

AGREEMENT

According to previous company statements, Nexa was in talks for the sale of Minera Pampa de Cobre since early May.

"Quilla intends to resume operations at the Chapi mine after closing and will also be responsible for executing the future mine closure, including any environmental liabilities or obligations," the statement said.

Under the deal, Quilla will also become the owner of the Pampa Negra exploration project, a copper initiative valued at US$45.5mn.

According to Minem, Pampa Negra is also in Moquegua region and has an approved environmental management instrument (IGA), but Nexa – which has an 80.2% share in the project – did not submit the paperwork to begin exploration work. That caused Minem to remove Pampa Negra from its list of priority exploration projects at the beginning of 2023 after not registering progress. An eventual resumption of the initiative will depend on the new owner.