Andean Precious Metals Corp. (TSX: APM) (OTCQX: ANPMF) has entered into a Sale and Purchase Agreement to acquire up to 7 million tonnes of oxide ore with Corporacion Minera de Bolivia, a Bolivian state-owned mining company, from certain mining concessions in Bolivia.

The Agreement covers up to 7 million tonnes of oxide ore located within a 250 kilometers radius of the San Bartolome processing facility. The Agreement complies with all national environmental and safety regulations, and the Company retains the right to accept oxide ore that is economically viable under prevailing market conditions. Following the execution of the Agreement, Andean will work jointly with COMIBOL to obtain the required environmental permits and social licenses, as well as to prepare the respective mines to begin operations. The Agreement is effective for a 10-year period.

Upon execution of the Agreement, the Company made an advance purchase for an initial 250,000 tonnes of oxide ore. Subsequent purchases, following the delivery of the initial purchase, will be made in tranches of 50,000 tonnes each. In addition, the Company will assume all operating costs incurred by COMIBOL for the mining of the oxide ore under the Agreement.

Alberto Morales, Executive Chairman and CEO, stated: “This Agreement creates an opportunity to increase our mineral processing rate, which could lead to an improved silver production profile. It also allows us to leverage the mill’s nameplate capacity of 5,000 tonnes per day with minimal to no capital investment. In addition, this Agreement demonstrates our collaboration with COMIBOL, that supports local communities and business partners in driving long-term and positive economic impact across Potosi and the surrounding region.”

About Andean Precious Metals

Andean is a growing precious metals producer focused on expanding into top-tier jurisdictions in the Americas. The Company owns and operates the San Bartolome processing facility in Potosí, Bolivia and the Golden Queen mine in Kern County, California, and is well-funded to act on future growth opportunities. Andean’s leadership team is committed to creating value; fostering safe, sustainable and responsible operations; and achieving our ambition to be a multi-asset, mid-tier precious metals producer.