Pan American Silver announced that it has agreed to sell its 100% interest in La Arena, which owns the La Arena gold mine as well as the La Arena II project in Peru, to Jinteng Mining, a subsidiary of Zijin Mining for $245M cash upfront and a $50M contingent payment. Under the terms of the agreement, at closing Zijin will pay $245M in cash and will grant Pan American a life-of-mine gold net smelter return royalty of 1.5% for the La Arena II project. Upon commencement of commercial production from the La Arena II project, the agreement provides for an additional contingent payment from Zijin of $50M in cash. The closing of the transaction is subject to customary conditions and receipt of regulatory approvals. Pan American expects the transaction to be completed in the third quarter of 2024. The La Arena property is located in the La Libertad province of Peru and is comprised of the La Arena gold mine and the La Arena II project. Since acquiring the mine from Tahoe Resources Inc. in 2019, Pan American has successfully added 535,521 ounces of gold through exploration, and extended the mine life from 2021 to 2026, with the potential for further extension.