Nexa Resources sells Minera Pampa de Cobre to Peru’s Quilla Resources

The transaction includes $1 million in cash at the closing of the transaction and another $4 million after the start of commercial production of the mining project. In addition, Nexa will receive contingent payments totaling up to $11 million if the average copper price exceeds certain thresholds and the mine reaches certain production milestones, plus a royalty on net mineral production from the Chapi mine.

According to Nexa Resources, the first payment will be made at the closing of the transaction and subsequent payments are expected to be made over the next few years. While completion of the transaction is subject to certain conditions precedent, it is expected to occur in December 2024.

The Chapi mine is engaged in copper exploration, extraction and processing. The deposit ceased operations in 2013 and is currently under maintenance. However, Quilla intends to resume it after the closing of the sale and will be responsible for executing the future closure of the mine, including any environmental obligations or liabilities.

PPU advised Nexa Resources Peru on the sale of Minera Pampa de Cobre, with a team led by partner Rafael Lengua, with associates Sergio C., Mitzy Longa and Ciomar Levano. In-house, Nexa Resources was advised by its corporate legal and institutional relations manager Magaly Bardales, as well as by its external counsels PPU through Rafael Lengua and Sergio Cueva.

Quilla was advised by GSA, with a team led by partners Luis Gastañeta, Edgardo Portaro and Alfonso Tola.

Peruvian firm Tres R Tax also advised Quilla Resources Peru in relation to various tax aspects of the acquisition process of the Chapi copper mine and the signing of the agreement with Nexa, with a team formed by Rossana Rodriguez, Poul Ponce and and Mariapía Sáenz.