Guanajuato Silver Co. Ltd. (GSilver) has signed a binding agreement with Great Panther Mining Ltd. to acquire all of Great Panther’s Mexican assets through the purchase of Great Panther’s Mexican subsidiary, Minera Mexicana Rosario (MMR), including the producing Topia mine and production facility, the San Ignacio mine, the Guanajuato Mine Complex (now referred to as the Valenciana mine) and the Cata processing plant.

The transaction expands GSilver’s operations from two mines and one production facility to five mines and three production facilities. The Topia mine, located in Durango, Mexico, is currently producing concentrates containing silver, lead, zinc and gold, and it has significant lead financing orders. Topia’s total 2021 silver equivalent production was more than 1.1 million oz AgEq. Total 2021 silver equivalent production at the Valenciana and San Ignacio mines and Cata processing plant was more than 1 million oz AgEq.

The total consideration is $14.7 million, satisfied by $6.7 million in GSilver Shares and $8 million in cash.

“This acquisition will prove instantly accretive,” GSilver President Ramon Davila said. “The Topia mine is currently producing and will immediately lift GSilver’s production profile. 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.”

Davila said GSilver plans to restart production from these mines and process the mineralized material using the excess capacity at its nearby El Cubo production facilities. “This acquisition keeps us on course to expeditiously establish GSilver as a midtier precious metals producer in Mexico,” he added.

Great Panther said the sale of the Mexican silver mines will allow it to focus on maximizing the full potential of the Tucano gold mine in Brazil and complete its pivot to gold, which started in 2019.