Andean Precious Metals Enters into an Exclusive Long-Term Agreement with COMIBOL to Purchase up to 7 Million Tonnes of Oxide Ore
- Agreement secures up to 7 million tonnes of oxide ore over 10 years
- Potential to increase silver production through higher mineral processing rates
- Leverages existing mill capacity of 5,000 tonnes per day with minimal capital investment
- Strategic partnership with state-owned COMIBOL strengthens local presence
- Company must assume all COMIBOL's operating costs for mining operations
- Environmental permits and social licenses still pending
- Purchase commitment requires significant working capital for ore acquisitions
Toronto, Ontario--(Newsfile Corp. - June 2, 2025) - Andean Precious Metals Corp. (TSX: APM) (OTCQX: ANPMF) ("Andean", or the "Company") has entered into a Sale and Purchase Agreement (the "Agreement") to acquire up to 7 million tonnes of oxide ore with Corporacion Minera de Bolivia ("COMIBOL"), a Bolivian state-owned mining company, from certain mining concessions in Bolivia.
The Agreement covers up to 7 million tonnes of oxide ore located within a 250 kilometers radius of the San Bartolome processing facility. The Agreement complies with all national environmental and safety regulations, and the Company retains the right to accept oxide ore that is economically viable under prevailing market conditions. Following the execution of the Agreement, Andean will work jointly with COMIBOL to obtain the required environmental permits and social licenses, as well as to prepare the respective mines to begin operations. The Agreement is effective for a 10-year period.
Upon execution of the Agreement, the Company made an advance purchase for an initial 250,000 tonnes of oxide ore. Subsequent purchases, following the delivery of the initial purchase, will be made in tranches of 50,000 tonnes each. In addition, the Company will assume all operating costs incurred by COMIBOL for the mining of the oxide ore under the Agreement.
Alberto Morales, Executive Chairman and CEO, stated: "This Agreement creates an opportunity to increase our mineral processing rate, which could lead to an improved silver production profile. It also allows us to leverage the mill's nameplate capacity of 5,000 tonnes per day with minimal to no capital investment. In addition, this Agreement demonstrates our collaboration with COMIBOL, that supports local communities and business partners in driving long-term and positive economic impact across Potosi and the surrounding region."
About Andean Precious Metals
Andean is a growing precious metals producer focused on expanding into top-tier jurisdictions in the Americas. The Company owns and operates the San Bartolome processing facility in Potosí, Bolivia and the Golden Queen mine in Kern County, California, and is well-funded to act on future growth opportunities. Andean's leadership team is committed to creating value; fostering safe, sustainable and responsible operations; and achieving our ambition to be a multi-asset, mid-tier precious metals producer.
For more information, please contact:
Amanda Mallough
Director, Investor Relations
amallough@andeanpm.com
T: +1 647 463 7808
Caution Regarding Forward-Looking Statements
Certain statements and information in this release constitute "forward-looking statements" within the meaning of applicable U.S. securities laws and "forward-looking information" within the meaning of applicable Canadian securities laws, which we refer to collectively as "forward-looking statements". Forward-looking statements are statements and information regarding possible events, conditions or results of operations that are based upon assumptions about future economic conditions and courses of action. All statements and information other than statements of historical fact may be forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as "seek", "expect", "anticipate", "budget", "plan", "estimate", "continue", "forecast", "intend", "believe", "predict", "potential", "target", "may", "could", "would", "might", "will" and similar words or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook.
Forward-looking statements in this release include, but are not limited to, statements and information regarding the Agreement and its impacts on the Company, the Company's supply chain and the Company's 2025 production. Such forward-looking statements are based on a number of material factors and assumptions, including, but not limited to: the Company's ability to carry on exploration and development activities; the Company's ability to secure and to meet obligations under property and option agreements and other material agreements; the timely receipt of required approvals and permits; that there is no material adverse change affecting the Company or its properties; that contracted parties provide goods or services in a timely manner; that no unusual geological or technical problems occur; that plant and equipment function as anticipated and that there is no material adverse change in the price of silver, costs associated with production or recovery. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements, or industry results, to differ materially from those anticipated in such forward-looking statements. The Company believes the expectations reflected in such forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct, and you are cautioned not to place undue reliance on forward-looking statements contained herein.
Some of the risks and other factors which could cause actual results to differ materially from those expressed in the forward-looking statements contained in this release include, but are not limited to: risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations; results of initial feasibility, pre-feasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; risks relating to possible variations in reserves, resources, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined; mining and development risks, including risks related to accidents, equipment breakdowns, labour disputes (including work stoppages and strikes) or other unanticipated difficulties with or interruptions in exploration and development; the potential for delays in exploration or development activities or the completion of feasibility studies; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; risks related to commodity price and foreign exchange rate fluctuations; the uncertainty of profitability based upon the cyclical nature of the industry in which the Company operates; risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental or local community approvals or in the completion of development or construction activities; risks related to environmental regulation and liability; political and regulatory risks associated with mining and exploration; risks related to the uncertain global economic environment; and other factors contained in the section entitled "Risk Factors" in the Company's MD&A for the three months ended March 31, 2025.
Although the Company has attempted to identify important factors that could cause actual results or events to differ materially from those described in the forward-looking statements, you are cautioned that this list is not exhaustive and there may be other factors that the Company has not identified. Furthermore, the Company undertakes no obligation to update or revise any forward-looking statements included in this release if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/254137
FAQ
What is the size of Andean Precious Metals' (ANPMF) new oxide ore agreement with COMIBOL?
How much oxide ore did ANPMF initially purchase from COMIBOL?
What is the duration of ANPMF's agreement with COMIBOL?
How will this agreement affect Andean Precious Metals' production capacity?
What are the key conditions of ANPMF's oxide ore purchase agreement?
