Esperanza Resources Corp. (TSXV:EPZ, OTCQX:ESPZF) announced that they will acquire assets from Pan American Silver and that Pan American has provided them with investment and a standby credit facility.

As quoted in the press release:

Transaction Highlights

  • Creates a multi-asset, financially strong, growth oriented, gold development Company fully funded to put its first gold mine into production.
  • Increases Esperanza’s consolidated measured and indicated resource base to 2.8 million ounces of gold and 28.9 million ounces of silver with additional inferred resources of 1.1 million ounces of gold and 8.0 million ounces of silver.
  • Greater scale and financial strength with approximately $75 million in cash and marketable securities and confirmed access to additional financing.

Esperanza’s President and CEO, Greg Smith, said:

This transaction sets the stage for the creation of a significant low-cost, multi-asset, precious metals producer. While the Esperanza gold project remains our flagship asset, the addition of the permitted and build-ready La Bolsa gold project provides an additional option for near-term gold production. Additionally, the Pico Machay and Calcatreu gold projects provide a meaningful pipeline for continued production growth.

To view the whole press release, click here.