McEwen grows gold production 50% with Timmins buy
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.