TORONTO, Ontario, Canada 3/6/12 (PennWell) -- Canadian mining company Dia Bras Exploration Inc. has completed the sale of its hydroelectric assets to Volcan Compania Minera S.A.A. via its Peruvian subsidiary Sociedad Minera Corona S.A.
Dia Bras and Corona signed a memorandum of understanding on Feb. 21, 2012, then completed the US$46.78 million deal on March 1.
Dia Bras will receive $24.51 million net of third party payments as a result of the sale of the hydroelectric assets. The figure represents its 81.7% equity stake in Corona.
Through its wholly owned subsidiary Dia Bras Peru S.A.C., Dia Bras Exploration acquired Minera Corona S.A. in May 2011. This company was engaged in the production and commercialization of electric power at its 18.5-MW Huanchor hydro plant in Huarochiri Province.
In turn, Volcan Compania Minera, through its subsidiary Empresa Administradora Chungar S.A.C., has a power generation system consisting of small hydroelectric plants. In 2010, Chungar used its 10 small hydro plants to generate 60% of the energy required by its mining operations. These plants are: Cacray, Yanahuin, Huanchay I, Huanchay II and Shagua in the Chicrin River Basin; Banos I, Banos II, Banos III and Banos IV in the Banos River Basin; and Francois and San Jose in the San Jose River Basin.
And in January 2011, Chungar acquired 100% of the shares of Energetica del Centro, holder and owner of the 180-MW Belo Horizonte project currently under development.