Scorpio Mining and U.S. Silver merge to create 'leading junior silver producer'
Mexican-focused silver producer, Scorpio Mining (TSX: SPM), merged with U.S. Silver & Gold (TSX: USA) to create a silver producer focused on the Americas and better survive low precious metal prices.
The entity will stay under the name Scorpio Mining. The new junior silver miner will have two established producing mines, a third mine in development, an advanced stage exploration project, and pro forma net working capital of approximately C$40 million.
Scorpio Mining's stock was halted today pending announcement of the news.
"This merger creates a stronger, better positioned company that is capable of not only surviving the current low silver price environment, but potentially transitioning from a junior precious metals company to an intermediate producer over the next couple of years," stated Darren Blasutti, President and Chief Executive Officer of U.S. Silver & Gold, in a statement.
Management believes a larger company will be able to realize efficiencies and save the combined company approximately C$2.0 – C$3.0 million per annum.
The news release stated that merging the companies will ". . . create a leading junior silver producer in the Americas."