Nyrstar has completed the sale of its mothballed Campo Morado zinc mine in Mexico to Telson Resources and Reynas Minas for a total cash consideration of $20 million, the Belgium-based zinc and lead producer said Wednesday.
There is also the potential for additional future proceeds through a variable purchase price agreement linked to production at the Campo Morado mine, it added.
In January last year, the company formally launched the sale process for all or the majority of its mining assets, which at the time comprised the Campo Morado mine in Mexico; Contonga, Pucarrajo and Coricancha mines in Peru; El Mochito in Honduras; El Toqui in Chile; Langlois and Myra Falls in Canada; and the Tennessee Mines unit in the US.
During the course of 2016 Nyrstar concluded sale agreements for El Toqui, El Mochito, Contonga and Coricancha.
The company is in the process of restarting its Middle Tennessee zinc mining operations.
The operations -- which were put into care and maintenance in December 2015 -- are expected to reach full capacity of 50,000 mt/year of zinc in concentrate by November.
One of the company's strategic priorities for 2017 is to "extract maximum value from the mining portfolio by concluding the sale of the Latin American mines and optimizing the North American mines, including the restart of the Middle Tennessee and Myra Falls mines, to sell for value or continue to operate for strong free cashflow if suitable offers are not received," Nyrstar said last month in its first-quarter results statement.
