-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DP65920SVX5NWBNmWSsF63us9pYSFxdIVJ2sreC+Pe1p/CclZMe/I+U099+NmMXy Hp+yhTUGQCsvYvx9mMj6Sw== 0001130319-02-001324.txt : 20021119 0001130319-02-001324.hdr.sgml : 20021119 20021119164120 ACCESSION NUMBER: 0001130319-02-001324 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20021118 FILED AS OF DATE: 20021119 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PAN AMERICAN SILVER CORP CENTRAL INDEX KEY: 0000771992 STANDARD INDUSTRIAL CLASSIFICATION: SILVER ORES [1044] IRS NUMBER: 999999999 FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-13727 FILM NUMBER: 02833391 BUSINESS ADDRESS: STREET 1: 1500-625 HOWE STREET CITY: VANCOUVER BC CANADA STATE: A1 ZIP: V6C 2T6 MAIL ADDRESS: STREET 1: 1500 625 HOWE ST CITY: VANCOUVER BC V6C 2T6 STATE: A1 ZIP: 999999999 FORMER COMPANY: FORMER CONFORMED NAME: PAN AMERICAN MINERALS CORP DATE OF NAME CHANGE: 19950608 6-K 1 o08284e6vk.txt FORM 6-K FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a - 16 OR 15d - 16 OF THE SECURITIES EXCHANGE ACT OF 1934 For November 18, 2002 PAN AMERICAN SILVER CORP. 1500 - 625 HOWE STREET VANCOUVER, B.C. V6C 2T6 Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F Form 40-F X ----- ----- Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes No X ----- ----- If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-_________. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. PAN AMERICAN SILVER CORP. Date: November 18, 2002 By: /s/ Gordon Jang ------------------------------------- Gordon Jang, Controller, and Corporate Secretary - 2 - EXHIBITS INCLUDED AS PART OF THIS REPORT Exhibit No. Document - ------- -------- 10.1 Material Change Report under Section 85(1) of the Securities Act (British Columbia) dated November 18, 2002. 99.1 Press Release dated November 8, 2002. EX-10.1 3 o08284exv10w1.txt MATERIAL CHANGE REPORT Exhibit 10.1 This is the form of a material change report required under section 85(1) of the Securities Act and section 151 of the Securities Rules. BC FORM 53-901F (PREVIOUSLY FORM 27) SECURITIES ACT MATERIAL CHANGE REPORT UNDER SECTION 85(1) OF THE SECURITIES ACT (BRITISH COLUMBIA) AND SIMILAR PROVISIONS OF OTHER APPLICABLE LEGISLATION ITEM 1. REPORTING ISSUER Pan American Silver Corp. (the "COMPANY") 1500 - 625 Howe Street Vancouver, BC V6E 2T6 ITEM 2. DATE OF MATERIAL CHANGE November 8, 2002 ITEM 3. PRESS RELEASE A press release was issued by the Company on November 8, 2002 at Vancouver, British Columbia and distributed through the facilities of Canada NewsWire. ITEM 4. SUMMARY OF MATERIAL CHANGE The Company announced that it has entered into two agreements with Volcan Compania Minera S.A.A. ("VOLCAN") regarding two large silver-bearing stockpiles located adjacent to Volcan's Cerro de Pasco operation in central Peru. The first agreement grants the Company the right to acquire a 60% interest in the stockpiles by spending US$2 million on the project over a three-year period. The second agreement grants the Company the right to mine and sell 600,000 tonnes of the richest silver stockpiles to a nearby smelter, which will use them as flux in its smelting operation. A ten-year contract has been negotiated with the smelter and stockpiles sales are expected to average approximately 46,000 tonnes per year resulting in an annual silver production of approximately 500,000 ounces at an estimated total production cost of less than US$2 per ounce. The purchase price will be US$4 million, payable in common shares of the Company valued at current market prices, plus a one-third production bonus to Volcan after the Company has recovered its acquisition costs, operating costs, deemed taxes and interest on the acquisition cost. ITEM 5. FULL DESCRIPTION OF MATERIAL CHANGE The Company announced that it has entered into two agreements with Volcan, a major Peruvian mining company regarding two large silver-bearing stockpiles located adjacent to Volcan's Cerro de Pasco operation in central Peru, about 36 km from the Company's Huaron mine. The first agreement grants the Company the right to acquire a 60 percent interest in the stockpiles by spending US$2 million on the project over a three-year period. In the twelve months following this period, the Company can increase its interest to 100 percent by paying Volcan US$3 million and granting Volcan a seven percent royalty on commercial production from the stockpiles. The first phase of the Company's work will be a detailed definition drilling program to confirm historic resources estimated by Volcan to be 26 million tonnes of stockpiles grading 227 g/t silver (a contained silver resource of more than 180 million ounces). The second phase will comprise detailed metallurgical studies and economic evaluation designed to determine the economics of commercial extraction. Historic studies indicate that a silver price in excess of US$6.50 would be required to profitably recover the contained silver. The Company's work will investigate this in detail and seek to improve project economics. The second agreement grants the Company the right to mine and sell 600,000 tonnes of the richest silver stockpiles to a nearby smelter, which will use them as flux in its smelting operation. A ten-year contract has been negotiated with the smelter and stockpile sales are expected to average approximately 46,000 tonnes per year resulting in annual silver production of approximately 500,000 ounces at an estimated total production cost of less than US$2 per ounce. The purchase price will be US$4.0 million, payable in the Company's common shares valued at current prices, plus a one-third production bonus to Volcan after the Company has recovered its acquisition costs, operating costs, deemed taxes and interest on the acquisition cost. ITEM 6. RELIANCE ON SECTION 85(2) OF THE ACT This report is not being filed on a confidential basis. ITEM 7. OMITTED INFORMATION There are no significant facts required to be disclosed herein which have been omitted. ITEM 8. SENIOR OFFICERS For Further information, please contact: Name: Gordon Jang Office: Controller and Corporate Secretary Telephone: (604) 684-1175 - 2 - ITEM 9. STATEMENT OF SENIOR OFFICER The foregoing accurately discloses the material change referred to herein. DATED at Vancouver, British Columbia, this ___ day of November, 2002. /s/ Gordon Jang ----------------------------------------------------- Signature of a senior officer of the reporting issuer Gordon Jang, Controller and Corporate Secretary - 3 - EX-99.1 4 o08284exv99w1.txt PRESS RELEASE DATED NOVEBER 8, 2002 Exhibit 99.1 (PAN AMERICAN SILVER CORP. LOGO) NEWS RELEASE November 8, 2002 PAN AMERICAN ACQUIRES PERUVIAN SILVER ASSETS FROM VOLCAN Vancouver, British Columbia ...(all currency amounts in US dollars)... Pan American Silver Corp. (NASDAQ: PAAS; TSE: PAA) announces that it has entered into two agreements with Volcan Compania Minera, a major Peruvian mining company regarding two large silver-bearing stockpiles located adjacent to Volcan's Cerro de Pasco operation in central Peru, about 36 km from Pan American's Huaron mine. The first agreement grants Pan American the right to acquire a 60 percent interest in the stockpiles by spending $2 million on the project over a three-year period. In the twelve months following this period, Pan American can increase its interest to 100 percent by paying Volcan $3 million and granting Volcan a seven percent royalty on commercial production from the stockpiles. The first phase of Pan American's work will be a detailed definition drilling program to confirm historic resources estimated by Volcan to be 26 million tonnes of stockpiles grading 227 g/t silver (a contained silver resource of more than 180 million ounces). The second phase will comprise detailed metallurgical studies and economic evaluation designed to determine the economics of commercial extraction. Historic studies indicate that a silver price in excess of $6.50 would be required to profitably recover the contained silver. Pan American's work will investigate this in detail and seek to improve project economics. The second agreement grants Pan American the right to mine and sell 600,000 tonnes of the richest silver stockpiles to a nearby smelter, which will use them as flux in its smelting operation. A ten-year contract has been negotiated with the smelter and stockpile sales are expected to average approximately 46,000 tonnes per year resulting in annual silver production of approximately 500,000 ounces at an estimated total production cost of less than $2 per ounce. The purchase price will be $4.0 million, payable in Pan American common shares valued at current prices, plus a one-third production bonus to Volcan after Pan American has recovered its acquisition costs, operating costs, deemed taxes and interest on the acquisition cost. Ross Beaty, Pan American's Chairman and CEO, said, "This set of agreements will give Pan American an excellent return from increased very low cost silver production over an estimated ten-year period. In addition, Pan American will hold a low-cost right to acquire what is probably the largest aboveground stockpile of silver-bearing mineralized material in the world, and time to conduct a thorough evaluation of the potential for commercial production from this material. These deals satisfy both of our corporate objectives: they will increase our immediate low-cost silver production, and they will give our shareholders great leverage to the silver price by materially increasing our silver resource holdings that can be produced from if silver prices increase in the future." - End - Ross J. Beaty, Chairman and C.E.O. or Anthony Hawkshaw, C.F.O. CAUTIONARY NOTE Some of the statements in this news release are forward-looking statements, such as estimates of future production levels, expectations regarding mine production costs, expected trends in mineral prices and statements that describe Pan American's future plans, objectives or goals. Actual results and developments may differ materially from those contemplated by these statements depending on such factors as changes in general economic conditions and financial markets, changes in prices for silver and other metals, technological and operational hazards in Pan American's mining and mine development activities, uncertainties inherent in the calculation of mineral reserves, mineral resources and metal recoveries, the timing and availability of financing, governmental and other approvals, political unrest or instability in countries where Pan American is active, labor relations and other risk factors listed from time to time in Pan American's Form 40-F. 1500-625 HOWE STREET, VANCOUVER, BC CANADA V6C 2T6 TEL 604.684.1175 FAX 604.684.0147 WWW.PANAMERICANSILVER.COM -----END PRIVACY-ENHANCED MESSAGE-----