Canada-based Bear Creek Mining has completed the acquisition of a 100% stake in the Mercedes gold-silver mine in Mexico from Canadian gold ore mining company Equinox Gold.
As per the deal, which was signed in December 2021, Equinox Gold has received $75m on closing of the transaction. The firm will also receive $25m within six months of closing of the deal.
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The consideration also includes issuance of 24.73 million shares of Bear Creek Mining.
Furthermore, Bear Creek Mining will pay 2% net smelter return on production from the Mercedes mine.
The sale forms part of Equinox Gold’s efforts to shift its focus on larger production and development assets.
Equinox Gold CEO Christian Milau said: “As a significant shareholder of Bear Creek Mining, we look forward to participating in the success of Mercedes and future development of Bear Creek Mining’s Corani silver-lead-zinc deposit, one of the largest, fully-permitted silver deposits in the world.”
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By GlobalDataLocated in the state of Sonora, approximately 300km northeast of Hermosillo, the Mercedes mine comprises 43 mineral concessions. It covers an area of 69,285ha.
Bear Creek Mining president and CEO Anthony Hawkshaw said: “We are extremely pleased to have acquired a producing gold-silver mine with a strong operating team, underlying assets with a replacement cost exceeding our purchase price and what we believe to be exciting “blue sky” exploration potential.”
Equinox Gold took over the control of the Mercedes mine last year following its acquisition of Premier Gold Mines.
