Great Panther Mining Ltd (TSE:GPR) (NYSEAMERICAN:GPL) has struck a deal with Nyrstar on amending certain agreements connected to the Coricancha mine in Peru, which the company says will improve its ability to advance the project.
Great Panther bought the project from Nyrstar in 2017 and the deal included that Nyrstar would have to fund a portion of the bond to secure remediation costs at Coricancha.
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Under the new terms, Great Panther can now use 'commercially reasonable efforts' to seek an amendment to a closure plan for certain legacy tailings facilities which Nyrstar is obligated to fund. The objective of the amendment is to seek a technically superior closure plan for approval by the Peruvian authorities with potentially lower costs.
In addition, Great Panther has agreed to pay interest on the bond amounts Nyrstar has agreed to continue to fund at an annual rate of 3-month US dollar LIBOR plus 5%, and to defer any relocation of the legacy tailings until an agreement on a modified closure plan is achieved or there is a legal requirement to move the tailings.
Nyrstar has also extended its remediation bond obligations beyond the original expiry date of June 30 this year.
"The amending agreements provide that Nyrstar will maintain a $7 million bond until June 30, 2021 and $6.5 million for the following year, effectively deferring Great Panther's funding requirements for these amounts until June 30, 2022," said Great Panther.
"We are very pleased with this agreement with Nyrstar that reduces our short-term funding requirements and improves our ability to advance Coricancha in a manner that meets our mutual interests," Rob Henderson, president, and CEO at Great Panther said in a statement.
"This latest agreement highlights Great Panther's commitment to realizing Coricancha's significant potential, particularly with the recent strength in gold and silver prices."
Great Panther has assets in Brazil, Mexico and Peru that includes three operating gold and silver mines, four exploration projects, and an advanced development project.
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