Colombia-based mining company Mineros has entered an agreement with Eris to sell a 100% interest in the Gualcamayo property, which hosts the Gualcamayo mine and the deep carbonates project.

Eris will acquire Minas Argentinas, which holds a 100% stake in the property, from Mineros’ subsidiaries Mineros Chile Rentista de Capitales Mobiliarios and Mineros Argentina.

The deal is taking place on an ‘as is, where is’ basis, according to which, the buyer will acquire all the shares in Minas Argentinas for $4m, which will be used to fund the ongoing operations at Minas Argentinas.

It will secure exclusivity during the negotiations and assume any obligations related to the property at deal closing.

The transaction also includes a contingent payment of $30m to Pan American Silver, should the deep carbonates project enter production, which would otherwise be payable to Mineros.  

Additionally, Eris agreed to provide up to $10m in credit facility to Minas Argentinas, of which $2m has been advanced to the company before the agreement was executed. The remaining $8m is expected to be provided during the transaction’s closure.

Upon closing of the transaction, Mineros’ subsidiaries will pay $6.5m to Eris to cover certain outstanding obligations of Minas Argentinas.

Mineros CEO and president Andres Restrepo said: “The sale of the Gualcamayo Property is in line with our strategy of actively managing our portfolio and focusing management's efforts on high margin, long-life and lower cost assets.

“We are pleased to sell the Gualcamayo Property to Eris LLC as we have full confidence that they will leverage their experience and knowledge gained from their local investments to maximise and enhance the future of the deep carbonates project. We wish to thank our local employees for their commitment, professionalism and contribution to Mineros' success over the past several years.”

The Gualcamayo property is located in San Juan, Argentina, and has been operating since 2009.

Mineros acquired the project from Yamana in 2018. The project includes a total area of 39,185ha, of which only 20% is claimed to have been explored.

The company has been investing $8m per annum in near-mine exploration and infill drilling to increase the mine life. The deep carbonates project within the property is claimed to have an upside potential of 1.1 million ounces (moz) of measured and indicated mineral resources and 0.8moz of inferred resources.