Coeur acquires concessions near Palmarejo from top silver producer Fresnillo
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(Kitco News) - Silver and gold miner Coeur Mining (NYSE: CDE) today announced an agreement to acquire concessions near the company's Palmarejo gold-silver mine in Mexico from leading silver producer Fresnillo.
"This transaction rationalizes land package to the East of existing operations and unlocks significant near-term and longer-term resource potential," the company said in a news release.
The company added that total consideration includes a cash payment of approximately $25 million ($10 million due at closing, which is expected to occur sometime in 2024) and a future royalty on certain ounces discovered on the purchased concessions.
According to Coeur, the first set of concessions cover the southeast extensions of the Independencia and Nacion deposits where mining currently takes place, while the second set of concessions, located to the northeast, surrounds multiple targets containing mineralization and historic resources that were added through the 2015 acquisition of Paramount Gold and Silver.
In the near-term, the company said it intends to pursue the southeast extensions of existing deposits that trend onto the claims, "which provides opportunities to add to Palmarejo's mine life and leverage existing infrastructure."
Coeur also noted that another near-term post-closing priority will be "to integrate, update and potentially add to historic resources" in the northeast area of the previously fragmented land package, "which represents an opportunity to further boost Palmarejo's overall mineral resources to the East."
Coeur Mining is a U.S.-based precious metals producer with four wholly-owned operations: the Palmarejo gold-silver complex in Mexico, the Rochester silver-gold mine in Nevada, the Kensington gold mine in Alaska and the Wharf gold mine in South Dakota. In addition, the company wholly-owns the Silvertip silver-zinc-lead exploration project in British Columbia.
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