Peruvian mining firm Buenaventura is strategically investing in zinc-rich Ayawilca, located on its home soil.

 

Ayawilca is owned by Tinka Resources, a Canadian company, which estimates the zinc zone located in the zinc-lead-silver belt of central Peru contains 11.7mn mt of Indicated Resources grading 6.9pc zinc, 0.2pc lead, 15 g/t silver and 84 g/t indium and 45mn mt of inferred Resources grading 5.6pc zinc, 0.2pc lead, 17 g/t silver, and 67 g/t indium.

 

Under terms of the agreement, Buenaventura has purchased a 19.9pc stake in Tinka for C$16mn (USD$12.1mn) and, because it’s at least 5pc, reserves the right to nominate a member to the Tinka’s board of directors when the transaction closes. Should the company’s stake increase above 20pc, it will have the right to dominate two members.

 

Victor Gobitz, chief executive officer of Buenaventura, called Ayawilca an attractive development that should benefit from synergizing with some of the companies existing Peruvian operations, like Uchucchacua, El Brocal and Yumpag. He added that the project has potential for additional mineral resource growth and new discvoeries.

 

CAD$1 = US$0.76 (December 20, 20190)

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