VANCOUVER (miningweekly.com) – Gold producer McEwen Mining has signed a binding definitive agreement with Primero Mining to buy the Black Fox Complex, in the historic Timmins mining camp of Ontario, for $35-million, the company announced on Tuesday.
In combination with McEwen’s earlier $54-million acquisition of Lexam VG Gold, the Black Fox acquisition is seen as a significant expansion of the junior miner’s production footprint in Canada, adding about 50 000 oz in 2018, and significantly lifting the company’s existing gold resources in the Timmins region.
Combined, these properties include seven development and exploration-stage projects.
Surplus mill and tailings capacity will also provide the capability to increase future output.
McEwen advised that the transaction was expected to close in late September.
Black Fox is located along a 7 km section of the Destor-Porcupine Fault, which is host to many world-class gold deposits. It is already well-endowed with the Black Fox mine, and the Grey Fox and Froome deposits, and has geologic traits that make it prospective to grow the existing deposits and for additional discoveries, McEwen stated.
McEwen’s main assets comprise the San José mine, in Santa Cruz, Argentina (49% interest); the El Gallo gold mine and El Gallo silver project, in Mexico; the Gold Bar project, in Nevada; the Timmins projects, in Canada; and the Los Azules copper project, in Argentina.