Hochschild Mining buys out Peruvian assets


LONDON, Oct 2 (Reuters) - Latin American precious metalsfirm Hochschild Mining said it planned to raise up to$96 million to help it buy the remaining 40 percent stakes inits Peruvian assets for up to $280 million.

The Lima-based company, which currently holds a 60 percentinterest in the Peruvian Pallancata mine and the Inmaculadaproject assets, said it would acquire International Minerals primarily for its 40 percent interest in thejointly-owned assets.

The acquisition is expected to be earnings enhancing in thefirst full year of ownership. Shares in Hochschild were down 2.7percent in early trading.

Hochschild said it planned to raise between $48-$96 millionin an equity placing to partially fund the acquisition and notedthe company is still on track to produce 20 million attributablesilver equivalent ounces in 2013.

Hochschild has projects in Argentina and Chile but its southPeruvian mines provide the bulk of its production.

"We are excited to be announcing today a strategicmilestone...by consolidating ownership in Pallancata, currentlyour biggest cash flow generator and Inmaculada, our mostexciting growth project," said the company's chief executiveIgnacio Bustamante.

The company said its other focus of growth, the Crespoproject, would be deferred as it focuses its capex spending onthe Inmaculada Project.

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