- Guanajuato Silver Company (GSVR) has signed an agreement with Great Panther Mining (GPR) to acquire all Great Panther’s Mexican assets
- Guanajuato Silver Company will purchase Great Panther’s Mexican subsidiary, Minera Mexicana Rosario S.A. de C.V., plus other assets
- This transaction will allow Guanajuato’s operations to expand from two mines and one production facility to five mines and three production facilities
- The total cost of the transaction is US$14.7M, which will include US$6,700,000 in GSilver shares and US$8,000,000 in cash
- GSilver mines and processes silver and gold concentrate from its El Cubo mine and mill
- Guanajuato Silver Company Ltd. opened trading at C$0.335 per share
Guanajuato Silver Company (GSVR) has agreed to acquire all Great Panther Mining’s (GPR) Mexican assets.
Guanajuato Silver Company will purchase Great Panther’s Mexican subsidiary, Minera Mexicana Rosario S.A. de C.V., including the producing Topia mine and production facility, the San Ignacio Mine, the Guanajuato Mine Complex and the Cata processing plant.
This transaction will allow GSilver’s operations to expand from two mines and one production facility to five mines and three production facilities.
The acquisition includes the Topia mine, located in Durango, Mexico which is currently producing concentrates containing silver, lead, zinc, and gold.
Significant lead financing orders have been confirmed from Ocean Partners (UK) Ltd. and from an affiliate of OCIM Metals and Mining.
The total 2021 silver equivalent production at Topia was 1,129,611 Ag Eq ounces.
In 2021 the total silver equivalent production at the Valenciana and San Ignacio mines and Cata processing plant was 1,051,336 AgEq ounces.
The total cost of the transaction is US$14.7M, which will be satisfied by US$6,700,000 in GSilver shares and US$8,000,000 in cash.
“This acquisition will prove instantly accretive; the Topia Mine is currently producing and will immediately lift GSilver’s production profile,” stated Ramon Davila, President and Director of GSilver.
“Within the Guanajuato mining district, the San Ignacio and Valenciana mines were put on care and maintenance less than eight months ago only due to a lack of available tailings facilities; GSilver plans to swiftly re-start production from these mines and process the mineralised material using the excess capacity at our nearby El Cubo production facilities,” he added.
“We are delighted to have come to this agreement with Great Panther, and we welcome them becoming a significant shareholder of our company,” noted Chairman and CEO James Anderson.
GSilver mines and processes silver and gold concentrate from its El Cubo mine and mill.
Guanajuato Silver Company Ltd. opened trading at C$0.335 per share.
