Acquisition Date

2022 / May / 02

Terms

1.0%–3.0% GRR*

Operator

Southern Copper Corp.

El Pilar is a low-capital intensity copper greenfield project located in Sonora, Mexico, approximately 45 km from Southern Copper Corporation's Buenavista mine. Estimated Proven & Probable Reserves as at December 31, 2021 at El Pilar are 317 Mt of ore with an average copper grade of 0.25% (cut-off grade was determined based on metallurgical recovery and operating costs).

Southern Copper anticipates that the project will operate as a conventional open-pit mine with annual production capacity of 36,000 tonnes of copper cathodes. The basic engineering study is finished and project development is ongoing. Production is expected to begin in 2024 and the mine life is estimated at 16 years.

Agreement terms are subject to the closing of the Transactions as defined in the Company's press release dated May 2, 2022.

See press release for more details.

*Additional Terms

1.0% GRR af ter 85 Mlbs Cu produced

increase to 2.0% GRR

if M&I Resources (inclusive of Reserves) > 3 Blbs; then

increase to 3.0% GRR

if M&I Resources (inclusive of Reserves) > 5 Blbs CuEq

 

El-Pilar