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Great Panther Mining has agreed to sell Guanajuato Silver Company 100% of its Mexican subsidiary Minera Mexicana El Rosario (MMR) (GSilver).
MMR is the owner of the El Horcón and Santa Rosa projects in Mexico, the Topia mine and production plant, and the Guanajuato Mine Complex (GMC).
Three mines, 25,000 acres of mineral claims, two flotation processing facilities, and sizable historical measured, indicated, and inferred resources are among the combined Mexican holdings of MMR.
For the purchase, GSilver will make an initial payment of $14 million plus an extra sum of up to $2 million.
In accordance with the terms of the agreement, GSilver will issue 25,787,200 GSilver common shares worth approximately $6.7 million at closure and make a $8 million cash payment.
With a focus on maximising the Tucano gold mine’s potential and seeking additional growth in Brazil, the acquisition moves GSilver closer to being a gold firm.
“This is a strategic deal that leaves the GMC and Topia mines in the hands of an operator who is well positioned to capture extra value from the assets and maintain a strong commitment to employees and local stakeholders,” said Great Panther Mining chair and interim CEO Alan Hair.
The district’s processing and tailings facilities owned by GSilver “further offer the basis for a near-term re-start of operations at the GMC.”
With the transaction, Great Panther Mining wants to concentrate on utilising the Brazilian Tucano Gold Mine to its fullest potential.
Hair continued, “We anticipate Tucano to resume steady-state production in the second part of the year and want to keep investing in maximising the value of the district’s regional potential as well as its subterranean resources.”
The acquisition is anticipated to completion in Q3 2022, subject to receiving all necessary regulatory and third-party clearances.
“The MMR acquisition further underscores our commitment to consolidating the Guanajuato mining district, which has a documented 480-year mining history of producing precious metals,” stated James Anderson, chairman and CEO of GSilver.
Construction, Infrastructure and Mining Group Media Publication
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