Bear Creek Mining acquires Mercedes mine from Equinox

Bear Creek Mining (TSXV: BCM) is buying  the Mercedes gold-silver mine in Mexico from Equinox Gold (TSX: EQX; NYSE-AM: EQX).

Fee to Equinox consists of a money fee of $75 million and the issuance of 24.73 million Bear Creek frequent shares upon closing.  A deferred money fee of $25 million can also be due inside six months of the deadline. As well as, Equinox will obtain a 2%  internet smelter return (NSR) royalty payable on metallic manufacturing from the Mercedes mining concessions.

The $75 million money fee shall be funded by $15 million from Bear Creek’s treasury and $60 million from Sandstorm Gold, which has entered right into a gold buy settlement with the corporate on the Mercedes mine ($37.5 million) in addition to a debt financing settlement ($22.5 million).

The Mercedes mine is positioned within the state of Sonora, about 300 km northeast of the town of Hermosillo. It has been in steady operation since commencing manufacturing in 2011.

All through Mercedes’ manufacturing historical past, gold-silver ore has been produced from 5 deposit areas, of which two (Diluvio and Lupita) are at present being mined.

Up till the top of 2020, about 5.84 million tonnes grading 4.42 grams gold per tonne and 49.5 grams silver per tonne have been processed at Mercedes, with complete manufacturing of about 781,800 ounces of gold and three,356,200 ounces of silver. 

The underground mine was beforehand acquired by Equinox as a part of its takeover of Premier Gold Mines final December.

“Shifting from a growth stage firm right into a valuable metals producer is a vital step in Bear Creek’s evolution,” Anthony Hawkshaw, Bear Creek’s president and CEO, acknowledged in a information launch.

“The acquisition of Mercedes gives our shareholders a money flowing asset with enlargement potential and participation in a land package deal with an thrilling exploration outlook.”

The corporate additionally says the Mercedes acquisition will present a supply of funding for future development of its Corani silver mine, thought-about to be one of many largest totally permitted silver-polymetallic deposits on this planet.

 

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Written by colin

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Bear Creek acquires Mercedes mine from Equinox