Canadian precious metals producer McEwen Mining (TSX, NYSE:MUX) said Thursday it’s buying the Black Fox mining complex in northern Ontario from Primero Mining.
The $35m deal is McEwen Mining’s second acquisition in the famous Timmins gold camp this year and CEO Rob McEwen described the transaction as “just the beginning of a new chapter of growth” for the Toronto-based company:
“Black Fox comes with a talented operating team, an underground mine producing 50-60,000 ounces of gold in 2017, a processing facility with excess capacity, two future development opportunities, and excellent exploration potential. Combined with our existing portfolio of Timmins deposits, I believe this is a logical and potent combination.”
Last year McEwen Mining produced 101koz of gold from its El Gallo mine in Mexico and 49%-owned San Jose mine in Argentina and the company is projecting the same for this year. Gold equivalent production for 2017 is pegged at 144koz.
McEwen, who built Goldcorp into a top gold producer before stepping down as CEO of the Vancouver company in 2005, owns 25% of McEwen Mining. MUX gained 2% in New York for a $712m market cap on a generally good trading day for gold miners.
Primero (NYSE:PPP) plunged 43% on Thursday after reporting a huge production miss at its Mexican San Dimas mine due to labour action and technical problems. The stock is worth $70m in New York after losing 74% of its value year to date.
2 Comments
Steven Walker
Soooo….let me get this straight…McEwen just bought a producing mine with all the management in place that has FAILED as a business and their shareholders, losing 3/4 of their invested dollars. Selling a producing gold mine for $35 million that produces $60-70 million in gold per year…..Does this make sense? NO it doesn’t…They are keeping the same management “team” in place? Oh I forgot what a genius Robbie is…he will snap his “Magic Whip” and all he will do is the same old same old. The mining model of screwing the shareholders has got to stop, as the industry is already broke and on the ropes from these shenanigans. Follow the pea under the ….cups, just another “shell” game..
Here is a picture of real miners….none of them are INVESTMENT BANKERS!!! https://uploads.disquscdn.com/images/e91e2bbd5d54bd68bda679444b00727b8f78546ff2dfa09294e30c9f8f1b8bad.jpg
ddearborn
Hmmm
Lest we forget the “CEO” McEwen got his 27%+ ownership in the company not through purchases on the open market, he simply gave them to himself stealing from the existing share holder equity. Hell people, ANYBODY can make money this way. Unless of course you happen to be a sucker, sorry, I mean common share holder that actually purchased this stock on the open market over the last 18 months…….