Torex expands North American presence with $26M acquisition of Reyna Silver

[Redator]

Torex Gold Resources (TSX: TXG) has expanded its North American exploration portfolio with the acquisition of Reyna Silver (TSXV: RSLV) in an all-cash deal valued at C$36 million ($26 million).

The acquisition, says Torex chief executive officer Jody Kuzenko, provides the company with “immediate access to new and exciting early-stage exploration projects within prolific mining camps in northern Mexico and Nevada.”

In Nevada, Reyna has the option to acquire 70% of the Gryphon Summit project and 100% of the Medicine Springs project, both prospective for silver-lead-zinc-copper. Its Mexican assets, which are all 100% owned, include the Guigui and Batopilas projects located in Chihuahua state.

Guigui is the flagship project, covering almost the entire Santa Eulalia mining district that produced more than 50 million tonnes at 310 grams silver per tonne, 8.2% lead and 7.1% zinc.

“With the technical expertise and breadth of our exploration team, proven capability to deliver on major projects with the recent completion and commissioning of our Media Luna project … we are well-positioned to advance Reyna Silver’s properties and unlock the full value of these four projects,” Kuzenko added.

Reyna Silver CEO Jorge Ramiro Monroy, commenting on the sale, said the “Torex offer allows these projects to remain as a portfolio and to have the necessary capital and expertise to move them to the next stage.”

Transaction details

Under the arrangement, Torex will acquire all of Reyna Silver’s share capital at a market value of C$0.13 per share. The consideration, totalling C$36 million, will be paid in cash.

By Monday’s close, Reyna Silver traded at the offer price with a market capitalization of C$32.5 million ($24 million). Torex, meanwhile, rose 1.4% to C$44.17 apiece for a market capitalization of C$3.8 billion ($2.8 billion).

Concurrent with the transaction, Torex has agreed to purchase units of Reyna Silver, also at market price, for a total investment of C$1.1 million. The proceeds, according to Reyna, will be used for payments relating to its option agreements in Nevada.

Upon closing, Torex said it plans to build off the exploration and drilling programs undertaken by Reyna at its Mexican assets, and to conduct an evaluation on the properties in Nevada.

The Toronto-based gold miner owns and operates the world-class Morelos mine complex located 180 km southwest of Mexico City. At an annual production of over 450,000 oz., the company is the largest gold producer in the country.

The Morelos property covers the Media Luna underground, ELG underground and ELG open pit mines, a fully-integrated processing plant, and related infrastructure. A third underground deposit, EPO, is in the development stage and is expected to enter production in late 2026.