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McEwen to snap up Primero operations
Posted on Friday, 11 August 2017 10:02
US gold and silver explorer McEwen Mining has inked an agreement to purchase the Black Fox Complex and associated assets of Canadian firm Primero Mining for around USD 35.00 million.
Definitive documentation is expected to be completed before the end of August.
Commenting on the purchase, chairman of the buyer, Rob McEwen, noted: "Buying the Black Fox Complex provides fantastic synergies with our recently acquired Timmins deposits. Our objective is to build a long-term production platform with a robust pipeline of production, development and exploration assets, all feeding into a single processing facility.
“This acquisition will add immediately to our gold production, but is just the beginning of a new chapter of growth for McEwen Mining.”
No further details of the purchase were disclosed.
British Columbia-based Primero has a portfolio of gold properties in North America, including its flagship San Dimas mine in Durango, Mexico, and the Black Fox mine near Timmins, Ontario, Canada.
The business posted a net loss of USD 234.42 million in the 12 months ended 31st December 2016, narrowed from a loss of USD 106.91 million in the previous year.
This is not McEwen’s first acquisition of 2017 to date; the company bought Ontario-based gold explorer Lexam VG Gold for around CAD 70.24 million (USD 55.22 million) in April.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 246 deals targeting gold ore miners announced worldwide during 2017 to date.
The most valuable of these was South African firm Sibanye Gold’s ZAR 13.08 billion (USD 974.66 million) rights issue in June.
Desarrollos Mineros San Luis, Zhaojin Mining Industry and Polymetal International, among others, have also been targeted so far this year.
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