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Hunt Mining selling Martha project tailings to Pan American Silver

Hunt Mining Corp. on Dec. 20 said it signed an agreement to sell existing tailings at the Martha project area for processing at Pan American Silver Corp.'s Manantial Espejo mill in Argentina.

Under the terms, Hunt will sell up to 10,000 dry tonnes of tailings per month for processing to extract gold and silver. The price will be calculated by subtracting costs incurred from net smelter return, which will then be split equally between Hunt Mining and Pan American Silver subsidiary Minera Triton Argentina SA.

Cerro Cazador SA, a unit of Hunt Mining, received an advance payment of US$250,000 for the delivery of the first 25,000 tonnes of material from the Martha tailings area.

Hunt Mining acquired the Martha silver mine from Coeur Mining Inc. in May.

The company noted that it was on schedule to resume production from the Martha mine this quarter.