Cerro de Pasco Resources announced Tuesday that it has agreed to sell its Santander mine in Peru to a Peruvian investment company controlled by Finanzas e Inversiones Corporativas (FIC).  

The Santander zinc-lead-silver mine is located approximately 215 kilometres northeast of Lima, and is comprised of an underground mine, a 2,000-tonne-per-day processing mill, a conventional sulphide flotation mill, and associated infrastructure. 

The deal is comprised of a cash component of $2.00 and a variable price of up to $10 million to be calculated, determined and paid from the date on which commercial production has been reached in the Santander pipe, the company said.  

Cerro de Pasco Resources CEO Guy Goulet said the sale aligns with the company’s strategy of reducing debt.  

Cerro de Pasco Resources acquired the Santander mine in late 2021 from Trevali. In June 2023 the operation underwent curtailment due to weak zinc prices.  

The company said it is focused developing of its principal 100% owned asset, the El Metalurgista mining concession in Central Peru.  

Cerro de Pasco Resources stock was down over 7% in late afternoon trade in Toronto. The company has a C$49.2 million ($36.3m) market capitalization.