Agnico Eagle acquires Mexico-focused silver explorer
Investors in Soltoro Ltd., (TSXV:SOL) a small-cap explorer focused in Mexico, were awarded handsomely on Friday after an announced take-over by Canadian gold producer Agnico Eagle Mines Ltd. (NYSE, TSX:AEM).
Shares in Soltoro rocketed 40.48 percent to 28.5 cents a share on the Toronto Venture Exchange, upon the news that Agnico Eagle will acquire all of Soltoro’s common shares for around C$31.6 million, or 32.5 cents per share.
The transaction means that Agnico Eagle will assume ownership of the El Rayo, El Tecolote, La Tortuga, San Pedro and Quila exploration projects held by Soltoro in the Mexican state of Jalisco. Other assets and liabilities associated with Soltoro’s Gavilan, El Santuario and Chinipas exploration properties, located outside of Jalisco, will be spun off to a different company.
Soltoro’s most advanced property is the El Rayo project which according to Soltoro is the site of some of the earliest silver mining in Mexico. The property lies contiguous to the El Barqueno deposit which was acquired in 2014 by Agnico Eagle through the purchase of Cayden Resources for $205 million.
The most recent NI 43-101 resource estimate, released in September 2014, shows 22.9 million silver-equivalent ounces in the measured and indicated category, and 13.8 million silver-equivalent ounces inferred. The report delineates both underground and open-pit resources.