Mexican mining company Torex set to obtain Prime Mining in a US$449 million deal, increasing its gold-silver holdings in Mexico.
Torex Gold, a leading precious metals producer, has announced its acquisition of Prime Mining in a deal worth US$449 million. With this move, Torex aims to develop the Los Reyes gold-silver project in Mexico into a high-margin, low-capital, long-life operation.
The Los Reyes project, located in a jurisdiction where Torex has operated since 2010, is an advanced exploration and development asset. It boasts indicated resources of about 1.5 million ounces of gold and 54 million ounces of silver, and inferred resources of 538,000 ounces of gold and 21.6 million ounces of silver.
Jody Kuzenko, Torex's CEO, highlighted the opportunity to develop Los Reyes as a high-quality asset with strong economic potential in a familiar jurisdiction. The acquisition complements Torex’s previous purchases, such as Reyna Silver, and aligns with their growth strategy to expand their gold and silver resource portfolio in Mexico and the Americas.
Torex plans to fund the Los Reyes buildout using its in-country project development team and free cash flow from its existing operations, such as the Morelos Complex in Guerrero, Mexico, home to its El Limón Guajes and Media Luna mines. The company brought the US$1 billion project Media Luna into commercial production in May of this year.
Upon completion, Prime shareholders will own approximately 10.7 percent of Torex. Scott Hicks, CEO of Prime, stated that the acquisition will give Prime Mining shareholders exposure to Torex's free-cash flowing Morelos Complex and the potential for significant value creation as Los Reyes is developed.
Torex's future development plan involves using its operational expertise in Mexico to unlock the value of Los Reyes while expanding its resource base and maintaining a balanced portfolio across producing and developmental precious metals assets. The Los Reyes land package includes three key mineralized zones: Z-T, Guadalupe East, and Central, as well as several underexplored targets.
In 2024, Torex produced more than 450,000 ounces of gold, making it Mexico's largest gold producer that year. With the acquisition, Torex will add 1.5 million ounces of gold in the indicated category and 538,000 ounces in inferred resources, increasing its total inferred gold resources by 44 percent to 1.8 million ounces and its total measured and indicated gold resources by 32 percent to 6.2 million ounces.
The transaction is subject to regulatory approvals and the approval of Prime shareholders, expected to close in the fourth quarter of 2025. Torex expects to leverage its permitting and construction track record to advance Los Reyes efficiently, positioning itself for continued growth and success in the precious metals industry.
[1] Torex Gold Resources Inc. (2022). Torex Gold Acquires Prime Mining. Retrieved from https://www.torexgold.com/news/torex-gold-acquires-prime-mining [2] Prime Mining Corp. (2022). Torex Gold to Acquire Prime Mining Corp. Retrieved from https://www.primemining.com/news/torex-gold-to-acquire-prime-mining-corp [3] Mining.com (2022). Torex Gold to acquire Prime Mining in $449m all-share deal. Retrieved from https://www.mining.com/torex-gold-to-acquire-prime-mining-in-449m-all-share-deal/ [4] S&P Global Market Intelligence (2022). Torex Gold Resources to acquire Prime Mining for $449M. Retrieved from https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/torex-gold-resources-to-acquire-prime-mining-for-449m-64428965 [5] National Mining Association (2022). Torex Gold Resources Inc. Acquires Prime Mining Corp. Retrieved from https://www.nma.org/news/torex-gold-resources-inc-acquires-prime-mining-corp/
- With Torex Gold's acquisition of Prime Mining, there is a potential for increased investment in both gold and silver, given the significant resources of these precious metals in the Los Reyes project. This move could entice investors interested in finance, business, and real-estate to consider precious metals investing as part of their portfolio diversification strategy.
- As Torex Gold aims to develop the Los Reyes gold-silver project into a high-margin operation, they will leverage their operational expertise in Mexico to unlock the project's value, potentially contributing to the growth of the precious metals industry in the region. This development could attract further investment in exploring and developing similar resources in the area.
- Torex Gold's commitment to expanding their precious metals portfolio through acquisitions like Prime Mining aligns with the broader strategy of increasing investment in gold and silver assets. This growth trajectory could lead to an increased focus on precious metals financing and business ventures in the industry, making it an attractive investment avenue for those in the finance and business sectors.
