Great Panther Mining Ltd (GPLDF)

[NYBob]

Great Panther Silver to Acquire Coricancha Polymetallic Mine in Peru
T.GPR | 8 days ago
PR Newswire

VANCOUVER, Dec. 19, 2016

TSX: GPR
NYSE MKT: GPL

VANCOUVER, Dec. 19, 2016 /PRNewswire/ -

GREAT PANTHER SILVER LIMITED (TSX: GPR; NYSE MKT: GPL)
("Great Panther" or the "Company") announces that it has entered into
an agreement with subsidiaries of Nyrstar N.V. ("Nyrstar") to acquire
the Coricancha gold-silver-lead-zinc-copper mine and mill complex (the
"CMC"). The CMC is located in the central Andes of Peru, approximately
90 kilometres by paved highway east of the city of Lima.

The acquisition will be structured as a share purchase whereby the
Company's wholly owned Peruvian subsidiary ("GP Peru") will acquire all
of the shares of Nyrstar Coricancha S.A. ("Coricancha") from
subsidiaries of Nyrstar. Coricancha is the owner of a 100% interest in
the CMC. Closing is subject to customary closing conditions and is
expected to take place in the first quarter of 2017.

"We are very excited about the prospects for the Coricancha Mine,"
stated Robert Archer, President & CEO. "We have built Great Panther by
acquiring past producing mines in Mexico and successfully bringing them
back into production.
We now hope to replicate this success in Peru, starting with the CMC.
The work we completed in 2015 and 2016 during the option term
demonstrated substantial upside and we believe that we have the
expertise and discipline to capitalize on that.
The project has the potential for annual production of
approximately 3 million silver equivalent ounces, which would be a
significant contribution to our growth.
Importantly, with more than US$54 million in cash, the Company is fully
financed to bring the mine back into production."

The CMC is a fully permitted polymetallic mine that includes an
operational 600 tonne per day flotation and gold BIOX® bio-leach plant
along with supporting mining infrastructure.
The CMC has been on care and maintenance since August 2013 when it was
closed due to falling commodity prices.
The CMC property comprises more than 3,700 hectares in the prolific
Central Polymetallic Belt and production at the mine dates back to
1906.
Gold-silver-lead-zinc-copper mineralization (approximately 80% gold-
silver by value) occurs as massive sulphide veins that have been mined
underground by cut and fill methods.

The execution of the agreement follows on the option agreement entered
into between Great Panther and Nyrstar in May 2015.
Great Panther undertook significant exploration and evaluation work on
the CMC in 2015 and 2016 that led to continued negotiations with
Nyrstar following the termination of the option agreement.

Under the terms of the purchase agreement, Great Panther will acquire
Coricancha from Nyrstar for a purchase price comprising
(i) US$0.1 million to be paid on closing,
(ii) an amount equal to cash on hand in Coricancha at completion, and
(iii) earn-out consideration of up to US$10.0 million.
Under the earn-out, Nyrstar will be paid 15% of the free cash-flow
generated by the CMC during the 5-year period after which
the CMC is cumulative free cash-flow positive from closing.

Great Panther is continuing with its engineering and technical evaluation for the reactivation of the CMC, with the objective of further refining the costs and timing for start-up. At this time, it is expected that it will take approximately 12 to 18 months to bring the mine back into production, based on the engineering studies completed to date, and that the costs to reactivate the mine will be in the order of US$25 million. However, these estimates are subject to further review and refinement of the start-up plans. The Company expects to announce further details closer to closing, and to commence the program to restart the mine shortly thereafter, including underground drilling, surface drilling (once permits are obtained), mine development, plant upgrades and other start-up evaluations and undertakings. In addition, an ongoing compilation of underground sampling data will be combined with the data obtained from the Company's 2015 - 2016 drilling programs, during the option phase, to update the resource base.

Nyrstar has agreed to be responsible for certain reclamation work and outstanding fines related to legacy tailings facilities at the CMC that Coricancha will undertake following closing, subject to agreed maximum amounts. In addition, Nyrstar will maintain the existing CMC mine closure bond for 3 years.

The technical information contained in this news release has been reviewed and approved by Robert F. Brown, P. Eng. and Vice President of Exploration for the Company. Aspects relating to mining and metallurgy are overseen by Ali Soltani, Chief Operating Officer for Great Panther.

ABOUT GREAT PANTHER

Great Panther Silver Limited is a primary silver mining and exploration company listed on the Toronto Stock Exchange trading under the symbol GPR, and on the NYSE MKT trading under the symbol GPL. Great Panther's current activities are focused on the mining of precious metals from its two wholly-owned operating mines in Mexico: the Guanajuato Mine Complex, which includes the San Ignacio Mine, and the Topia Mine in Durango.

Robert Archer
President & CEO

CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information -----undue reliance on forward looking statements.
The Company has no intention to update forward looking statements except as required by law.

SOURCE Great Panther Silver Limited

Great Panther Silver, Ltd. (GPL)

http://www.greatpanther.com

http://www.greatpanther.com/English/News/News-Details/2016/Great-Panther-Silver-to-Acquire-Coricancha-Polymetallic-Mine-in-Peru/default.aspx

- God Bless -