On May 1, 2024, Pan American Silver Corp. (NYSE: PAAS) (TSX: PAAS) agreed to sell its 100% interest in La Arena S.A., including the La Arena gold mine and La Arena II project in Peru, to Jinteng (Singapore) Mining Pte. Ltd., a subsidiary of Zijin Mining Group Co., Ltd., for $328.3 million (US$245 million) in cash upfront and a $67 million (US$50 million) contingent payment. The transaction, aimed at optimizing Pan American's portfolio, followed the Yamana transaction and retained future upside through royalties.

Michael Steinmann, President and CEO of Pan American, highlighted that proceeds from the sale would bolster the company’s financial position, facilitating investments in high-quality assets, debt reduction, and shareholder returns. Under the agreement, Zijin would pay $328.3 million (US$245 million) at closing and provide Pan American with a 1.5% life-of-mine gold net smelter return royalty for the La Arena II project. An additional $67 million (US$50 million) payment would be made upon the commencement of commercial production at La Arena II.

The deal's completion, anticipated in the third quarter of 2024, is subject to customary conditions and regulatory approvals. Since acquiring La Arena from Tahoe Resources Inc. in 2019, Pan American added 535,521 ounces of gold through exploration and extended the mine's life from 2021 to 2026, with further extension potential.