TSX: GPR | NYSE American: GPL
A strategic transaction that is the next step towards
becoming a gold company focused on maximizing potential of the
Tucano Gold Mine and pursuing further growth in Brazil
This news release constitutes a "designated news release" for
the purposes of the Company's prospectus supplement dated
October 15, 2021, to its short form
base shelf prospectus dated September 10,
2021.
VANCOUVER, BC, June 29,
2022 /PRNewswire/ - Great Panther Mining Limited
(TSX: GPR) (NYSE-A: GPL) ("Great Panther" or the "Company"), a
growth-oriented precious metals producer focused on the Americas,
announces that it has entered into a Share Purchase Agreement (the
"Agreement") with Guanajuato Silver Company Ltd. ("GSilver") to
sell 100% of the Company's Mexican subsidiary Minera Mexicana El
Rosario S.A. de C.V. ("MMR"), which holds the Guanajuato Mine
Complex (the "GMC"), the Topia
mine, and the El Horcón and Santa
Rosa projects, all located in Mexico.
"This is a strategic transaction that places the GMC and
Topia mines in the hands of an
operator who is well positioned to unlock additional value from the
assets and maintain a strong commitment to employees and local
stakeholders," stated Alan Hair,
Chair and Interim CEO. "Furthermore, GSilver's processing and
tailings facilities in the district provide the platform for a
near-term re-start of operations at the GMC.
"The sale of the Company's silver mines in Mexico will allow us to focus on maximizing
the full potential of the Tucano Gold Mine in Brazil and complete the pivot to gold started
by the Company in 2019. Our capital allocation priorities are
focused on Tucano as this is where we see the greatest value
creation potential for our stakeholders. We expect Tucano to return
to steady-state production in the second half of the year and
intend to continue investing into unlocking value both from the
underground as well as the regional potential of the district. Our
long-term objective is to grow further in Brazil. Divesting the Mexican silver assets
best positions the Company to achieve these goals."
Under the terms of the Agreement, GSilver will purchase MMR for
a total upfront consideration of US$14,700,000 million plus up to US$2 million in additional payments, payable as
follows:
- US$8,000,000 cash payable on
closing
- A total of 25,787,200 common shares of GSilver valued at
approximately US$6,700,000 based on
current trading prices
- US$500,000 upon producing 2.5
million ounces of silver from the GMC and Topia
- US$750,000 upon the price of
silver closing at or above US$27.50
per ounce over a 30-day period in the two years following the
Agreement
- US$750,000 upon the price of
silver closing at or above US$30.00
per ounce over a 30-day period in the two years following the
Agreement
In conjunction with closing, MMR will repay the balance
outstanding of the Samsung lead concentrate prepayment facility,
and accordingly Samsung will release the pledge of MMR shares
associated with this facility. Great Panther has engaged GenCap
Mining Advisory Ltd. as its sole financial advisor and McCarthy
Tétrault LLP and RB Mexico Law-Abogados as its legal advisors in
connection with the Agreement. Closing of the Agreement, expected
in the third quarter of 2022, is subject to satisfaction of certain
conditions including receipt of all requisite third-party and
regulatory approvals.
ABOUT GREAT PANTHER
Great Panther is a growth-oriented precious metals producer
focused on the Americas. The Company owns a portfolio of assets in
Brazil, Mexico and Peru that includes three gold and silver
mines, an advanced development project and a large land package
with district-scale potential. Great Panther is focused on creating
long-term stakeholder value through safe and sustainable
production, reinvesting into exploration and pursuing acquisition
opportunities to complement its existing portfolio. Great Panther
trades on the Toronto Stock Exchange trading under the symbol GPR
and on the NYSE American under the symbol GPL.
CAUTIONARY STATEMENT ON
FORWARD-LOOKING INFORMATION
This news release contains forward-looking statements within the
meaning of the United States Private Securities Litigation Reform
Act of 1995 and forward-looking information within the meaning of
Canadian securities laws (together, "forward-looking statements").
Such forward-looking statements may include, but are not limited
to, statements regarding (i) the Company's ability to maximize the
full potential of the Tucano Gold Mine in Brazil, (ii) GSilver's ability to maximize the
potential of the GMC and Topia
mine and to re-start operations at the GMC in the near-term, (iii)
the consummation and timing of the Agreement, (iv) the satisfaction
of the conditions precedent to the Agreement (v) the strategic
vision for the Company and expectations regarding exploration
potential, production capabilities and future financial or
operating performance once the Agreement closes, (vi) the success
of future mine and operational planning and the Company's ability
to unlock the underground and regional potential at Tucano, and
(vii) the Company's ability to grow as a result of exploration or
from accretive acquisition opportunities in South America.
These forward-looking statements and information reflect the
Company's current views with respect to future events and are
necessarily based upon a number of assumptions that, while
considered reasonable by the Company, are inherently subject to
significant operational, business, economic and regulatory risks
and uncertainties, including risks described in respect of Great
Panther in its most recent annual information form and management's
discussion and analysis filed with the Canadian Securities
Administrators and available at www.sedar.com and its most recent
annual report on Form 40-F and management's discussion and analysis
on Form 6-K filed with the Securities and Exchange Commission and
available at www.sec.gov .
There is no assurance that these forward-looking statements will
prove accurate or that actual results will not vary materially from
these forward-looking statements. Although the Company has
attempted to identify important factors that could cause actual
results to differ materially, there may be other factors that cause
results not to be as anticipated, estimated, described, or
intended. Accordingly, readers are cautioned not to place undue
reliance on forward looking statements. Forward-looking statements
and information are designed to help readers understand
management's current views of our near- and longer-term prospects
and may not be appropriate for other purposes. The Company does not
intend, nor does it assume any obligation to update or revise
forward-looking statements or information, whether as a result of
new information, changes in assumptions, future events or
otherwise, except to the extent required by applicable law.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/great-panther-announces-agreement-to-sell-the-guanajuato-mine-complex-and-topia-mine-in-mexico-301578379.html
SOURCE Great Panther Mining Limited