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Dia Bras subsidiary selling hydroelectric assets in Peru for US$46.8M

By The Canadian Press  | February 21, 2012

TORONTO - Dia Bras Exploration Inc. (TSXV:DIB) announced Tuesday that a subsidiary is selling its hydroelectric assets in Peru for almost US$46.8 million.

Shareholders of the subsidiary, Sociedad Minera Corona S.A, have already approved the deal with Volcan Compania Minera S.A.A., Dia Bras said in a release Tuesday.

Under terms of last May's purchase agreement with Corna, Dia Bras will receive US$24.5 million representing its 81.7 per cent equity stake in Corona net of third-party payments as a result of the sale.

"Corona's hydroelectric assets are a non-core asset for Dia Bras as they do not supply electricity to Yauricocha's mining operations in Peru," said president and CEO Daniel Tellechea.

"The sale of this power asset will allow management to focus its time and the company's capital resources on continuing to develop and expand Yauricocha's mine potential."

In addition to the Yauricocha mine in central Peru and the Bolivar mine in Chihuahua state, Mexico, Dia Bras is also pursuing the exploration and development of several other properties in Mexico.

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