McEwen Mining has reached an agreement with Primero Mining Corp. to purchase its Black Fox Complex near Timmins, Canada. The agreed purchase price is $35 million, subject to closing adjustments. Definitive documentation is expected to be completed before the end of this month.
“Buying the Black Fox Complex provides fantastic synergies with our recently acquired Timmins deposits,” said Rob McEwen, chairman, McEwen Mining. “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.
He added that the acquisition would immediately add to its gold production.
“Black Fox comes with a talented operating team, an underground mine producing 50,000 ounces to 60,000 ounces of gold in 2017, a processing facility with excess capacity, two future development opportunities, and excellent exploration potential,” McEwen said.
McEwen Mining’s principal assets consist of the San José mine in Santa Cruz, Argentina (49% interest), the El Gallo Gold mine and El Gallo Silver project in Mexico, the Gold Bar project in Nevada, the Timmins projects in Canada, and the Los Azules copper project in Argentina.