Cerro de Pasco Resources (CDPR) has agreed to divest its Santander zinc-lead-silver mine in Peru to FIC03, a Peruvian investment company controlled by Finanzas e Inversiones Corporativas (FIC).

This share purchase agreement, effective as of 29 August 2024, includes all assets and liabilities related to the mine.

The consideration for the sale includes a cash component of $2 and a variable price of up to $10m (37.89m sol), contingent upon the commencement of commercial production at Santander Pipe.

The Santander Mine, acquired by CDPR in late 2021, faced operational curtailment in June 2023 due to economic pressures impacting zinc prices.

The mine's assets feature a 2,500 tonnes per day sulphide milling and flotation plant. CDPR's consolidated mine plan for the Santander mine includes the current resource at Magistral and all known resources at the Santander Pipe.

The transaction between CDPR and FIC03 is classified as an "arm's length transaction".

As part of the agreement, CDPR will also settle outstanding obligations incurred between itself and its subsidiaries over time.

CDPR CEO Guy Goulet said: “The sale of the Santander Mine aligns with our strategy to focus on reducing corporate debt. We thank the Santander team for their commitment and dedication, and we wish them success in executing the projects we have developed together.”

FIC is expanding its investment portfolio with a focus on significant mining projects in the country's central region.

The company intends to meet increased global demand for minerals such as gold, copper and zinc, aiming to consolidate its position in the market.