Torex expands North American presence with $26M acquisition of Reyna Silver

Torex Gold Resources (TSX: TXG) has actually increased its North American expedition profile with the purchase of Reyna Silver (TSXV: RSLV) in an all-cash bargain valued at C$ 36 million ($ 26m).

The purchase, states Torex president Jody Kuzenko, offers the business with “prompt accessibility to brand-new and amazing early-stage expedition jobs within respected mining camps in north Mexico and Nevada.”

In Nevada, Reyna has the choice to obtain 70% of the Gryphon Top task and 100% of the Medication Springs task, both possible for silver-lead-zinc-copper. Its Mexican properties, which are all 100% had, consist of the Guigui and Batopilas jobs situated in Chihuahua state.

Guigui is the front runner task, covering practically the whole Santa Eulalia mining area that created greater than 50 million tonnes at 310 grams silver per tonne, 8.2% lead and 7.1% zinc.

” With the technological know-how and breadth of our expedition group, verified capacity to provide on significant jobs with the current conclusion and appointing of our Media Luna task … we are well-positioned to progress Reyna Silver’s homes and open the amount of these 4 jobs,” Kuzenko included.

Reyna Silver Chief Executive Officer Jorge Ramiro Monroy, discussing the sale, stated the “Torex deal enables these jobs to stay as a profile and to have the essential resources and know-how to relocate them to the following phase.”

Deal information

Under the plan, Torex will certainly obtain every one of Reyna Silver’s share resources at a market price of C$ 0.13 per share. The factor to consider, amounting to C$ 36 million, will certainly be paid in money.

By Monday’s close, Reyna Silver traded at the deal cost with a market capitalization of C$ 32.5 million ($ 24m). Torex, at the same time, increased 1.4% to C$ 44.17 each for a market capitalization of C$ 3.8 billion ($ 2.8 bn).

Simultaneous with the purchase, Torex has actually accepted acquire devices of Reyna Silver, additionally at market value, for an overall financial investment of C$ 1.1 million. The earnings, according to Reyna, will certainly be utilized for settlements associating with its choice contracts in Nevada.

Upon closing, Torex stated it intends to develop off the expedition and boring programs embarked on by Reyna at its Mexican properties, and to perform an examination on the homes in Nevada.

The Toronto-based gold miner possesses and runs the first-rate Morelos mine complicated situated 180 kilometres southwest of Mexico City. At a yearly manufacturing of over 450,000 oz., the business is the biggest gold manufacturer in the nation.

The Morelos residential or commercial property covers the Media Luna underground, ELG underground and ELG open pit mines, a fully-integrated handling plant, and relevant framework. A 3rd below ground down payment, EPO, remains in the growth phase and is anticipated to get in manufacturing in late 2026.