ASX-traded EV Resources (EVR) has entered into an agreement with Daura Gold to sell its 100%-owned Yanamina gold and silver project in Peru for a total of $6 million.
In 2019, EVR acquired Yanamina for $100 000. The project is located in the Ancash Province in Central Peru with existing resource of 265,000 ounces of gold. According to the company, it has a significant exploration upside with near-term production potential.
The sale follows a detailed review undertaken by EVR against a backdrop of substantially improved gold and silver prices. The company will receive payment for the mine in stages, the first one being a cash consideration of $150 000. Further stages of payments depend on Daura receiving permits and achieving milestones for Yanamina’s development.
“The transaction once complete has the potential to add materially to the cash position of the company whilst also providing the company with an option to maintain its exposure to gold without requiring additional funding,” EVR said in a statement.
Completion of the transaction is subject to definitive documentation, stock exchange approval and shareholder approval from EVR, if required.
Theodor Lisovoy, Managing Editor, Rough&Polished
