Another acquisition in the precious metals sector is on the horizon! Torex Gold Resources (WKN A2AMAJ) intends to acquire Prime Mining (WKN A2PRDW), the owner of the Los Reyes gold and silver project in Mexico. For this, they are prepared to pay CAD 449 million in shares.
The aim of the acquisition for Torex is to increase its medium- and long-term growth potential by acquiring a high-quality project that is already in an advanced exploration or development phase. Torex had already acquired Reyna Silver in June, which granted the Canadians access to early-stage exploration projects.
Prime Mining’s Los Reyes project is located in Sinaloa, Mexico, and is intended to be an important addition to Torex’s project pipeline. Overall, it has a resource of 1.5 million ounces of gold and 54 million ounces of silver in the Indicated category, as well as 538,000 ounces of gold and 21.6 million ounces of silver in the Inferred category, both surface and underground.
This would increase Torex’s gold resources (Measured and Indicated) by 32% to 6.2 million ounces and in the Inferred category by 44% to 1.8 million ounces. Furthermore, the silver portion of Torex’s resources will significantly increase with the Prime acquisition.
Torex operates the mining complex southwest of Mexico City and produces more than 450,000 ounces of gold per year there. This makes Torex Mexico’s largest gold producer — especially since another deposit is expected to be brought into production by the end of 2026.
The deal with Prime now stipulates that Prime shareholders will receive 0.06 Torex shares per share held. That amounts to approximately 10.5 million new Torex shares or 10.7% of the company.
