Torex Gold buys Prime Mining in $327M Mexico expansion

[Redator]

Canada’s Torex Gold Resources (TSX: TXG) is making another bold move in Mexico, announcing a C$449 million ($327M) all-share deal to acquire Prime Mining (TSX: PRYM), owner of the Los Reyes gold-silver project.

Under the agreement, Prime shareholders will receive 0.060 Torex shares for each Prime share, translating to roughly 10.5 million new Torex shares, or 10.7% of the company. 

Torex said the acquisition enhances its medium and long-term growth potential, by adding a high-quality advanced exploration/development-stage asset in Mexico.

The move follows Torex’s acquisition in June of junior Reyna Silver, which granted the Toronto-based miner access to early-stage exploration projects in northern Mexico and Nevada, US.

The Los Reyes project, located in Sinaloa, is a key addition to Torex’s development pipeline. It hosts a combined open-pit and underground mineral resource of 1.5 million ounces of gold and 54 million ounces of silver in the Indicated category, along with 538,000 ounces of gold and 21.6 million ounces of silver in the Inferred category.

Silver boost

With this acquisition, Torex boosts its Measured and Indicated gold resources by 32% to 6.2 million ounces, and its Inferred resources by 44% to 1.8 million ounces. The deal also diversifies Torex’s portfolio with significantly increased silver exposure.

“The acquisition of Prime Mining, and the previously announced all-cash acquisition of Reyna Silver, support our strategy to systematically build a diversified, Americas-focused precious metals producer,” Torex chief executive officer Jody Kuzenko said in the statement.

Torex operates the Morelos mine complex 180 kilometres southwest of Mexico City. The site includes the Media Luna and ELG underground deposits, the ELG open pit, a fully integrated processing plant, and supporting infrastructure. 

Morelos produces more than 450,000 ounces of gold annually, making Torex the largest gold producer in Mexico. The company also plans to bring a third underground deposit, EPO, into production by late 2026.