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Mining industry

Torex Gold to Acquire Prime Mining's Los Reyes Gold-Silver Project in Mexico for $449 Million

Strategic Insights

— 2 min read

Canadian intermediate gold producer Torex Gold Resources Inc. has agreed to acquire all issued and outstanding common shares of Prime Mining Corp. in a definitive plan of arrangement. The acquisition will create a diversified Americas-focussed precious metals company, with Torex owning a 100% interest in Prime Mining's Los Reyes gold-silver project in Mexico. The Los Reyes Project hosts a significant mineral resource of approximately 1.5 million ounces (Moz) gold and 54.0 Moz silver in the Indicated category and 538 thousand ounces (koz) gold and 21.6 Moz silver in the Inferred category.

Key Takeaways:

  • Torex Gold Resources Inc. has agreed to acquire Prime Mining Corp. through a definitive plan of arrangement, creating a diversified Americas-focussed precious metals company.
  • The acquisition will result in Torex owning a 100% interest in Prime Mining's Los Reyes gold-silver project, a prospective, advanced exploration/development-stage asset located in Mexico.
  • The Los Reyes Project hosts a combined underground and open-pit mineral resource of approximately 1.5 million ounces (Moz) gold and 54.0 Moz silver in the Indicated category and 538 thousand ounces (koz) gold and 21.6 Moz silver in the Inferred category.
  • Prime Mining shareholders will receive 0.060 of a common share of Torex for each Prime Mining Share held, implying a 32.4% premium to the 30-day volume-weighted average price of the Prime Mining Shares.
  • The transaction provides Prime Mining shareholders with access to Torex's strong balance sheet, liquidity, and growing significant free cash flows from Media Luna, eliminating financing and dilution risks to bring the project into production.
  • Torex will issue approximately 10.5 million Torex Shares to Prime Mining shareholders, and existing Prime Mining shareholders will own approximately 10.7% of Torex.
  • The transaction will be completed pursuant to a court-approved plan of arrangement under the Business Corp's Act (British Columbia).

Statistics:

  • Torex Gold Resources Inc. to acquire Prime Mining Corp.'s Los Reyes gold-silver project for approximately $449 million (CDN).
  • Mineral resource of approximately 1.5 million ounces (Moz) gold and 54.0 Moz silver in the Indicated category.
  • Additional Inferred mineral resource of 538 thousand ounces (koz) gold and 21.6 Moz silver.
  • Prime Mining shareholders to receive 0.060 of a common share of Torex for each Prime Mining Share held, implying a 32.4% premium to the 30-day volume-weighted average price of the Prime Mining Shares.
  • Torex to issue approximately 10.5 million Torex Shares to Prime Mining shareholders.

Sources:

  • M2 EQUITYBITES-August 7, 2025-Torex Gold to Acquire Prime Mining's Los Reyes Gold-Silver Project in Mexico for CDN 449m
  • ((Comments on this story may be sent to info@m2.co.uk))

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