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Thu May 23, 2002
PAN AMERICAN SILVER BUYS ROYALTY ON LA COLORADA
Pan American Silver Corp. (NASDAQ: PAAS; TSE: PAA) has exercised its right to acquire all of the existing five percent net smelter return royalty on its La Colorada silver mine in Mexico. Pending regulatory approval, Pan American will issue 390,117 common shares with a four-month hold period, for a total purchase price of US$3 million, for the royalty that was retained by the former owners when Pan American bought the mine in 1998. The royalty purchase will result in 100 percent ownership of La Colorada by Pan American, with no encumbrances, and will increase Pan American's cash flow from the mine when full scale production begins, currently planned for mid-2003.
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Ross J. Beaty, Chairman and C.E.O. or
Rosie Moore, VP Corporate Relations
(604) 684-1175
www.panamericansilver.com
CAUTIONARY NOTE
Some of the statements in this news release are forward-looking statements, such as estimates of future production levels, expectations regarding mine production costs, expected trends in mineral prices and statements that describe Pan American's future plans, objectives or goals. Actual results and developments may differ materially from those contemplated by these statements depending on such factors as changes in general economic conditions and financial markets, changes in prices for silver and other metals, technological and operational hazards in Pan American's mining and mine development activities, uncertainties inherent in the calculation of mineral reserves, mineral resources and metal recoveries, the timing and availability of financing, governmental and other approvals, political unrest or instability in countries where Pan American is active, labor relations and other risk factors listed from time to time in Pan American's Form 40-F. |
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