Pan American adds to silver holdings

Toronto-listed Pan American Minerals is expanding its silver interests by purchasing a minority interest in Compania Minera Las Torras from a subsidiary of Homestake Mining (NYSE).

The Mexican company owns a group of producing and non-producing silver mines in Mexico.

The acquisition will provide 1.6 million oz. silver and 12,500 oz. gold per year to Pan American.

The purchase price for just under a 30% interest in the Mexican company is US$6 million, with US$3 million payable in cash and the balance payable in the form of 856,425 warrants convertible into the same number of Pan American common shares.

Pan American President John Wright says the purchase is contingent on the majority owner of the Mexican company waiving its right of first refusal. Wright expects to release cost estimates and reserve figures for the Mexican operations when the purchase is complete.