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Sierra buys Cusi royalty

Sierra Metals has bought back a 3% royalty on metal sales from its Cusi silver mine in Mexico as it doubles production at the site.
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Cusi in Mexico

Staff reporter

Sierra is paying US$4 million for Minera Cusi SA de CV's royalty on life-of-mine net revenues, less transportation costs.

"The acquisition of this royalty agreement is strategically important to Sierra Metals as it enhances the cost structure of our operations at a time when we are significantly expanding our production capacity at our Cusi Mine and Malpaso processing plant," said Sierra CEO and president, Igor Gonzales.

With the Cusi repurchase the company would no longer have any royalties on its properties or mines, except government levies.

Sierra also has the Yauricocha mine in Peru, and Bolivar in Mexico.