Rebaza, Alcázar & De Las Casas advised Nexa Resources Peru, as seller, on the definitive agreement dated September 4, 2024 for the sale of all shares issued by Compañía Minera Cerro Colorado S.A.C., a wholly-owned subsidiary of Nexa Resources group holding the mining rights to Pukaqaqa project, to Olympic Precious Metals Ltd. The closing of the transaction is expected to occur by December 2024 and is subject to certain customary conditions precedent.
Pukaqaqa is a greenfield copper and molybdenum mining project located in the Huancavelica region of Peru, which is in exploration stage.
The aggregate consideration for this transaction comprises cash payments of USD 4.3 million to be made upon closing and up to 48 months thereafter, as well as additional cash payments up to USD 25 million subject to completion of certain milestones in the development of the project.
The transaction represents Nexa Resources’ continued effort to optimize its mining portfolio and improve its free cash flow. Ignacio Rosado, CEO of Nexa Resources, commented: “The sale of Pukaqaqa is another step in our journey to continually maximize value for the Company and its shareholders. Portfolio optimization is a central part of our strategy to improve cash flow generation and returns”.
Nexa Resources is a large-scale, low-cost integrated zinc producer with over 65 years of experience developing and operating mining and smelting assets in Latin America. Nexa Resources currently owns and operates five long-life mines, three of which are located in the central Andes region of Peru. Nexa Resources also currently owns and operates three smelters, one of which is Cajamarquilla, located in Lima, which is the largest smelter in the Americas.
Olympic Precious Metals Ltd is a Canadian company dedicated to the development of copper and gold opportunities across the Americas. Olympic is committed to preserving, growing, and realizing long-term shareholder value in a responsible manner, delivering lasting benefits to local communities and stakeholders.