Buy out of Peruvian assets for Hochschild Mining

Precious metals company Hochschild Mining has announced its plan to raise up to $96m (£60m) to fund buying the remaining 40 per cent stake in its Peruvian assets. (Release)

The full cost of the acquisition stands at about $280m. Latin American Hochschild has a 60 per cent interest in the Peruvian Pallancata mine and the Inmaculda project assets, with the 40 per cent stake currently owned by International Mineral Corporation (IMZ).

Hochschild has projects in Argentina and Chile but its south Peruvian mines provide the greater part of its production.

Shares in Hochschild were down 2.7 per cent in early trading. The acquisition is expected to be earnings enhancing in the first full year of ownership.

The company expects the acquisition to be completed by the end of this year.