Nyrstar completes sale of El Toqui zinc-lead-gold mine for $25 mln

Nyrstar has completed the sale of its El Toqui zinc-lead-gold mine in Chile to Australia’s Laguna Gold Limited for $25 million in cash, the Belgium-based miner said on Thursday, November 3.

Nyrstar had announced the deal in June as part of a formal sale process the company launched in January for all or majority of its mining assets.

Of the total consideration, $12 million is payable in cash by the closing of the transaction and $13 million in milestone cash payments over a four-year period thereafter.

As part of the sale, Nyrstar and Laguna have also entered into an offtake agreement whereby Laguna will sell to Nyrstar all of the zinc concentrate production from El Toqui for the coming four year period and 85% of the zinc concentrate production thereafter.

El Toqui produced 37,900 tonnes of zinc in concentrate, 2,100 tonnes of lead in concentrate, 10,000 ounces of gold in concentrate and 266,000 ounces of silver in concentrate last year. The mine was owned by Nyrstar after it acquired Breakwater Resources in August 2011.

Nyrstar’s zinc metal output dipped 11% year-on-year dip to 245,000 tonnes in July-September following maintenance shutdowns and unplanned outages, the company said in its interim report on Wednesday.