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Peruvian miner Minsur has agreed to buy the 70% of compatriot miner Marcobre that is owned by Hong Kong-based CST Mining for US$505mn, paper Gestión reported.
Minsur subsidiary Cumbres Andinas signed the contract with CST.
The acquisition is still subject to customary requirements and conditions as well as the approval of CST's shareholders, according to the report.
At a general shareholders meeting on April 21, Minsur approved the transference of US$60mn to Cumbres Andinas, mainly to cover the escrow which is equivalent to 10% of the agreed price.
Marcobre owns the Marcona copper property and the Mina Justa red metal project which has a JORC compliant resource of 413Mt grading 0.79%, The mines and energy ministry (MEM) approved the EIA to develop the project in Ica region in September 2010.
A definitive feasibility study on the project set a start date in 2013 with average production of 110,000t/y over a 10-year mine life.
Minsur is Peru's only tin producer, operating the San Rafael mine in Puno region, and the Funsur smelter and refinery in Ica region. The company is controlled by local holding Grupo Brescia.
Last year, Swiss-based commodities trader Glencore International (LSE: GLEN) conditionally agreed to buy the 70% stake in Marcobre for a cash consideration of US$475mn. Glencore rejected the deal in November.