Karmin has entered into a share purchase agreement (the “Purchase Agreement”) with One Valley Peru S.A.C. (as “Buyer”) and its parent company VI Mining PLC (the “VI Mining”) for the sale of all the shares of Karmin’s wholly-owned subsidiary Karmin Peru S.A.C. (“Karmin Peru”), which holds its 100% interest in the Cushuro Gold Project. VI Mining is a public company in the United Kingdom whose shares trade on the NEX Exchange Growth Market (the (“NEX Exchange”).
Karmin is pleased to provide a progress update on its 30% owned Aripuanã Zinc Lead Copper Silver Project (“Aripuanã”) which is a main near-term growth project being run by its partner Nexa Resources S.A. (“Nexa”).
The Aripuanã project is owned by Mineração Dardanelos Ltda., a joint venture between Nexa (which holds a 63.3% interest), Compañía Minera Milpo S.A.A., a subsidiary of Nexa (which holds a 7.7% interest) and Mineração Rio Aripuanã Ltda., a subsidiary of Karmin (which holds the remaining 30%). Aripuanã is an underground polymetallic project containing zinc, lead and copper, with an anticipated mine life of 24 years and a projected start date in 2020. As set out in the PEA, the estimated aggregate capital expenditure required for this project is US$354.3 million. It is currently estimated that the Aripuanã project, if and when it is fully developed and begins operation, could produce an annual average of approximately 51.0 thousand tonnes of zinc in concentrate, 20.0 thousand tonnes of lead in concentrate, 4.0 thousand tonnes of copper in concentrate, 1.0 million ounces of silver and 25.0 thousand ounces of gold over a 24-year life of mine.
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