McEwen Mining to acquire Black Fox complex in Canada
McEwen Mining has signed an agreement to acquire Primero Mining’s Black Fox complex and associated assets and liabilities in the gold mining camp of Timmins, Canada.
The company will pay $35m to Primero towards the proposed acquisition, which is expected to improve its presence in Canada.
McEwen Mining chairman and chief owner Rob McEwen said: “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.”
The Black Fox acquisition comprises an underground mine, which has a production capacity ranging between 50,000oz and 60,000oz of gold this year, according to Primero.
The proceeds from the sale of assets will enable Primero to reduce its total debt position.
Expected to be completed in the third quarter of this year, the transaction is subject to customary closing conditions.
Primero acquired the Black Fox complex from Brigus Gold in March 2014.
Located within the Abitibi greenstone belt, the Black Fox mineralisation is an Archean age lode gold deposit, which hosts greenstone host rocks, and gold-bearing quartz-carbonate veins.