Mexican authorities have granted Canadas First Majestic Silver their antitrust clearance to go ahead with its planned acquisition of fellow miner Primero Mining, in a cash and stock deal valued at $ 320 million, including debt.
With the transaction, first announced in January, First Majestic gains access to Primeros flagship asset, the San Dimas silver-gold mine, located in what the Mexico-focused company defines as it n++backyardn++, in the state of Durango.
The all-share deal takes First Majestics annual output to 30 million equivalent oz. silver a year, up from the 16.2-million equivalent oz. silver it produced in 2016. The stream lowers the amount of payable metal compared to the current stream, which First Majestic has said would allow for greater free cash flow generation at San Dimas. In addition, basing the new stream on gold-equivalent production is likely to improve First Majestics exposure to silver.