EV Resources to sell Peru project to Daura Gold
Australia-listed EV Resources (EVR) on Monday announced an agreement to sell its Yanamina gold and silver project in Peru for up to $6-million as the company continued to offload noncore assets.
Under the terms of the agreement, TSX-listed Daura Gold would acquire 100% of the Yanamina project, located in Peru’s Ancash region.
EVR originally acquired the project in late 2019 for $100 000, along with deferred milestone payments and a 1% net smelter royalty on production above 200 000 oz of gold.
EVR launched a strategic review of the asset in October, citing a backdrop of stronger gold and silver prices and incoming approaches from interested buyers. The company said on Monday that the divestment would strengthen its balance sheet while preserving exposure to gold through deferred payments tied to development milestones.
EVR would receive $150 000 in cash on completion of the transaction, with Daura also taking on the 2024 concession payments due before June 30, 2025. A further $150 000 in cash is due one year from closing. Additional staged payments include $1.7-million upon Daura securing a social licence for drilling, $2-million at the start of infrastructure construction, and $2-million upon the commencement of commercial production. These milestone payments may be made in cash or Daura shares at the buyer’s discretion.
Daura will also assume any outstanding obligations under the existing project agreement with Happy Diamonds, signed in December 2019.
Completion of the transaction is subject to definitive documentation, stock exchange approval and shareholder approval from EVR, if required.
In May, EVR announced the sale of its Coyote Creek antimony project in Utah, US, to fellow ASX-listed Trigg Metals.
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