Andean shares rally on Bolivian oxide ore purchase deal
Andean Precious Metals Corp. [APM-TSXV, ANPMF-OTCQB] said it has entered into a sale and purchase agreement to acquire 7.0 million tonnes of oxide ore with Corporacion Minera de Bolivia (COMIBOL), a Bolivian state-owned mining company, from certain mining concessions in that country.
The shares rallied on the news, rising 7.6% or 16 cents to $2.27. The shares trade in a 52-week range of $2.25 and 91 cents.
Andean’s key assets include the Golden Queen unit, which operates the Soledad Mountain mine and heap leach operation in Kern County, California.
The company also operates the only commercial silver oxide plant in Bolivia. The San Bartolome carbon in leach oxide processing plant is located beside the historic Cerro Rico Silver Mine. Cerro Rico is known as one of the world’s largest silver deposits and has been mined since the late 1500s for precious and base metals.
The agreement covers oxide 7.0 million tonnes of oxide ore located within a 250 kilometre radius of the San Bartolome processing facility. Andean said the deal 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 being 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.
“This agreement creates an opportunity to increase our mineral processing rate, which could lead to an improved silver production profile,” said Andean Executive Chairman and CEO. “It also allows us to leverage the mill’s nameplate capacity of 5,000 tonnes per day with minimal to no capital investment,” he said. “In addition, this agreement demonstrates our collaboration with COMIBOL, that a supports local communities and business partners in driving long-term and positive economic impact across Potosi and the surrounding region.
San Bartolome produced 4.5 million silver equivalent ounces (AgEq) in 2024, achieving a strong cash gross operating margin (CGOM) of US$9.15 per ounce of silver equivalent sold and a gross margin rate of 38.14% for 2024.
San Barolome produced 10,172 gold equivalent (AuEq) ounces in the first quarter of 2025, versus 9,541 ounces of AuEq in the first quarter of 2024
The company reported CGOM of jUS$11.86 per AgEq ounce sold and GMR of 41.11% for the first quarter of 2025, versus CGOM of $0.73 per silver equivalent ounce sold and a GMR of 1.12% for the first quarter of 2024.
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