Pan Andean Minerals Ltd. said Aug. 3 that it signed a nonbinding letter of intent with Great Panther Silver Ltd. to process mineralized rock produced from the former's Pucacorral and Chanape silver projects in Peru.

The companies will assess processing at Great Panther's Coricancha mine and mill facilities and will also consider other areas of cooperation within the footprint of the properties. Coricancha is on care and maintenance and lies about 15 kilometers away from Pan Andean's two mines.

A formal agreement is conditional on Great Panther completing a pre-feasibility study on the Coricancha project and having excess milling capacity to treat mineralized rock from Pan Andean's projects.