Volcan Adds Hydro Plant

Canadian miner Dias Bras Exploration has agreed to sell the Huanchor Hydroelectric power plant to Peruvian miner Volcan Compania Minera for $46.8m. Dias Bras’ subsidiary Minera Corona has signed a memorandum of understanding with Volcan for the sale, the company says. As structured, Dias Bras will receive $24.5m from the sale, in line with its 81.7% stake in Corona. Dias Bras’ core business focuses on Peru’s Yauricocha mine which it will continue to develop using the funds from the sale of the non-core hydroelectric assets. A spokesman for Dias Bras did not return calls for comment. Officials at Volcan could not be reached for additional details of the purchase. The acquisition of the 19MW Huanchor plant fits well with Volcan, which already owns several hydroelectric power plants in the Andean country.