The Latin American precious metals business, based in Lima, currently holds a 60 percent interest in the Pallancata mine and the Inmaculada project assets. In order to acquire the remaining percentage of the assets the company has said it will acquire its owner International Minerals.
Hochschild said it planned to raise between $48-$96 million in an equity placing to partially fund the acquisition and noted the company is still on track to produce 20 million attributable silver equivalent ounces in 2013.
"We are excited to be announcing today a strategic milestone...by consolidating ownership in Pallancata, currently our biggest cash flow generator and Inmaculada, our most exciting growth project," said the company's chief executive Ignacio Bustamante.
While Hochschild does also have projects in Argentina and Chile, it is its south Peruvian mines that provide the bulk of its production.
