Esperanza to Sell San Luis, Peru Interest to Silver Standardadmin
Esperanza Resources Corp. is pleased to announce that it has reached an agreement to sell its minority interest in the San Luis project, Peru, to Silver Standard Resources Inc., the majority owner and operator of San Luis. The transaction has been approved by the Boards of Directors of Esperanza and Silver Standard but remains subject to customary conditions, including the receipt of regulatory and other required approvals.
Under the terms of the agreement, Esperanza will receive as consideration:
– A payment of CDN$17 million; – Return of the 6,459,600 shares of Esperanza owned by Silver Standard; and
– A one percent net smelter return royalty on all production.
Bill Pincus, Esperanza’s President and CEO, said, “This is a good transaction all the way around. Esperanza is monetizing its minority interest in a non-core asset. The cancellation of the Esperanza stock could remove up to approximately 11 percent of the outstanding shares and result in a greater asset value per remaining share. The cash payment together with the existing funds will result in a $27 million treasury for EPZ.
“The proceeds will allow Esperanza to focus on the advancement of the Cerro Jumil, Mexico project, continue EPZ’s involvement with Global Mineral Ltd. and its Strieborna, Slovakia deposit and move forward with its new exploration prospects in Peru and Mexico. With interests in two advance-stage projects, a full treasury and an exciting exploration portfolio, Esperanza is well positioned for future growth and creating new opportunities to further enhance shareholder value.
“It has been a pleasure concluding this agreement with Silver Standard and we wish them the best success in developing San Luis.”