(Kitco News) - On Wednesday, Guanajuato Silver (TSXV: GSVR) announced that it has signed a binding definitive agreement with Great Panther Mining (TSX: GPR) to acquire all of Great Panther’s Mexican assets through the purchase of Great Panther’s Mexican subsidiary.
The company said that assets to be acquired including the producing Topia mine and production facility, the San Ignacio mine, the Guanajuato Mine Complex (GMC) and the Cata processing plant. GSilver added it will henceforth refer to GMC as the Valenciana mine.
According to the company’s statement, the total consideration is USD$14.7M; satisfied by US$6,700,000 in GSilver shares and US$8,000,000 in cash.
GSilver noted that with this acquisition, its operations will expand from two mines and one production facility to five mines and three production facilities.
President and Director Ramon Davila stated, “This acquisition will prove instantly accretive; 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; GSilver plans to swiftly re-start production from these mines and process the mineralised material using the excess capacity at our nearby El Cubo production facilities. This acquisition keeps us on course to expeditiously establish GSilver as a mid-tier precious metals producer in Mexico.”
GSilver mines and processes silver and gold concentrate from its El Cubo mine and mill. The company continues to delineate additional silver and gold resources through underground drilling at El Cubo and its nearby El Pinguico project. Both projects are located within 11km of the city of Guanajuato, Mexico, which has an established 480-year mining history.
