SSR Mining (ASX:SSR) has entered into a definitive agreement to sell its San Luis Project in Peru for US$42.5 million to Highland Silver Corp (CSE:HSLV).
The sale comprises Highland paying US$5 million in upfront cash to $3.47 billion market capitalisation company SSR, and up to US$37.5 million in contingent payments payable in cash.
SSR says the transaction is expected to close in Q1 2024.
As part of the agreement, SSR will retain a 4% net smelter returns (NSR) royalty on San Luis, which will be granted prior to the closing of the transaction.
SSR notes at any time until starting constriction, half of the NSR royalty can be repurchased by Highland Silver for US$15 million in cash.
The San Luis project lies in central Peru, 500km northwest of Lima and covering 23,144 hectares across 31 concessions.
Highland Silver Corp is a mineral explorer focused on discovering silver-gold-polymetallic projects in the Central Andes.
SSR Mining is a gold-focused company with 4 producing operations in the US, Türkiye (Turkey), Canada, and Argentina, as well as a pipeline of ‘high-quality’ development and exploration assets.
Write to Aaliyah Rogan at Mining.com.au
Images: SSR Mining