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Pan American Silver Corp. Message Board

  • warmcamp warmcamp Feb 25, 2013 6:15 PM Flag

    Gold projects on move

    PAAS disposes three gold development projects (La Bolsa, Calcatreu, Pico Machay) to Esperanza (EPZ.v), gold exploration company managed by old Minefinders guys.

    On top of that PAAS pays about $35M in cash and gets in total (projects and cash) about 45% ownership in EPZ. Currently, EPZ owns one gold development project in Mexico and after transaction is closed it will have 4 projects.

    Today’s news release can be found in Google.News (search by Pan American Silver).

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    • What's your take on this, Warm? I know PAAS management has always avoided gold mining for some reason, but why use former MFN dudes for your "autopilot" plan? Sounded like the MFN management kinda screwed up running Dolores (PAAS expects to improve that show quite a bit), so why would you dish off these assets + $35M to have the same monkeys running the show?

      • 1 Reply to tattooaj
      • Difficult to say. Good ole guys factor, maybe? Also, if PAAS is firmly against gold mining (it seems to be the case) then giving it to anyone willing to build mines is better than just keeping assets idle. After all, PAAS will own almost 50% of any success (or failure).

        Dolores was a difficult thing to build and operate as it is seen clearer now. La Bolsa looks simple. Another Esperanza project (Cerro Jumil) looks doable too (at least based on company releases).

        In total this deal is not too bad, especially after looking in specific details. It still brings up concerns that PAAS own pipeline just got even thinner than it was before. Maybe, some companies are good mine operators and bad explorers. On the contrary, old Minefinders loved drilling and prospecting.

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