Apex Silver Mines Ltd. agreed to sell a 35 percent stake in the San Cristobal silver and zinc mine in Bolivia to Sumitomo Corp. for $224 million in cash and a portion of future metal production.
As part of the transaction, Sumitomo would hand over more than 20 million ounces of silver from the project and about 200,000 metric tons of zinc, Denver-based Apex Silver said in a statement.
“Sumitomo’s proven track record of partnerships in major mining operations around the world will solidify the successful development of San Cristobal,” Apex chief executive Jeffrey said in the statement.
Apex Silver plans to start the San Cristobal mine in the third quarter of next year. Sumitomo’s involvement will help the company successfully develop the mine with financial resources and help the venture sell its metals worldwide, company spokesman Igor Levental said in a telephone interview.
Sumitomo’s involvement comes at a time when Bolivia’s president, Evo Morales, is negotiating greater state control over the country’s natural resources.
Apex Silver’s shares rose 42 cents, or 2.8 percent, to $15.26 Monday on the American Stock Exchange. The stock has tumbled 41 percent from a record closing high of $26 on April 6 after Morales took control of the country’s oil and natural-gas fields.
