Torex Gold Resources to acquire Prime Mining
This transaction will grant Torex a 100% interest in the Los Reyes gold-silver project.
The Los Reyes project in Mexico is an advanced exploration/development-stage asset. It contains a combined underground and open-pit mineral resource of around 1.5 million ounces (moz) of gold and 54moz of silver in the Indicated segment, as well as 538,000 ounces of gold and 21.6moz of silver in the Inferred segment.
Prime Mining shareholders are set to receive 0.060 of a Torex share for each share held. This exchange ratio implies a 32.4% premium to Prime Mining's 30-day volume-weighted average price as of 25 July 2025.
Torex president and CEO Jody Kuzenko said: 'The Los Reyes project represents a unique opportunity for the Torex team to develop a high-quality asset with the potential for a high-margin, low-capital and long-life operation in a jurisdiction that we know very well.
'The acquisition of Prime Mining, and the previously announced all-cash acquisition of Reyna Silver, support our strategy to systematically build a diversified, Americas-focused precious metals producer with a portfolio of producing, development and exploration stage assets.'
The transaction values Prime Mining at approximately $449m (C$617.37m), with Torex issuing around 10.5 million new shares. Post-transaction, Prime Mining shareholders will own roughly 10.7% of Torex.
Notably, the transaction does not require a vote from Torex shareholders. However, Prime Mining's major stakeholders, including Pierre Lassonde and senior officers, have agreed to vote in favour of the transaction.
The deal is subject to customary closing conditions including court and regulatory approvals. A termination fee of $12.5m is stipulated if the transaction is not completed under certain conditions.
The arrangement will also see the settlement of Prime Mining's restricted stock units (RSUs) and deferred share units (DSUs), with an adjustment of outstanding options and warrants to Torex's terms.
Subject to regulatory approvals, the transaction is expected to close in the second half of 2025 (H2 2025), with the delisting of Prime Mining shares from the Toronto Stock Exchange to follow.
CIBC World Markets and Cassels Brock & Blackwell are advising Torex, while Trinity Advisors Corporation, BMO Nesbitt Burns, and Blake, Cassels & Graydon are advising Prime Mining.
Prime Mining director and CEO Scott Hicks said: 'The addition of Prime Mining's high-quality Los Reyes project to the Torex pipeline as its next development asset presents both Prime Mining and Torex shareholders with substantial value enhancement through this share-based acquisition.
'In addition to gaining exposure to Torex's free-cash flowing Morelos Complex, Prime Mining shareholders can continue to realise significant value creation as Los Reyes is developed with the benefit of Torex's operational and development experience in Mexico.'
Additionally, Torex has announced the planned acquisition of Reyna Silver for C$36m, further consolidating its position in the mining sector.
"Torex Gold Resources to acquire Prime Mining" was originally created and published by Mining Technology, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
27 minutes ago
- Yahoo
Consider these 3 top funds to buy this August
Funds provide a way for investors to buy high-performing assets while achieving effective diversification for risk management purposes. My own preference is to buy exchange-traded funds (ETFs) — I prefer the better price transparency, the trading flexibility, and the lower costs that these passive investment vehicles offer compared with actively managed ones. With this in mind, here are three such funds that stand out for serious consideration. Top gold ETF Demand for gold ETFs like iShares Physical Gold (LSE:SGLN) has exploded in 2025. According to the World Gold Council (WGC), these funds experienced inflows of 397 tonnes over the first half — to put that into context, that was the best semi-annual performance since the depths of the pandemic in 2020. According to the Council: 'fluctuating US trade policy; a weaker US dollar; heightened geopolitical tensions punctuated by regional flare-ups; close attention to the respective paths of inflation and economic growth; and fresh record highs in the gold price' attracted fresh investment inflows. There's no guarantee that gold ETFs will keep growing in value. A recovering US dollar alone may put gold prices under strain. But with all these factors still in play, I'm confident of further gains. The iShares Physical Gold product has risen 20.2% since the start of 2025. New defence fund Defence stocks are also in high demand as those geopolitical tensions grow. The WisdomTree Europe Defence ETF (LSE:WDEP) has effectively harnessed this trend, rising 21.8% in value since its launch in mid-March. The fund invests in Europe's largest defence companies, and includes UK shares BAE Systems and Rolls-Royce from the UK. In total, it holds shares in 24 different contractors, giving it exposure to sub-sectors including aerospace, cyber security, shipbuilding, and munitions. BAE Systems — currently the ETF's second-largest holding — underlined the defence sector's bright outlook this week when it upgraded its own full-year sales and profits forecasts. It now expects revenues to rise 8%-10%, and underlying earnings before interest and tax to rise by 9%-11%. There's a risk that supply chain and cost issues may impact the fund's performance. But on balance, I'm confident it'll keep rising strongly. Euro star Demand for European shares has also detonated this year. Fears over economic and political conditions in the US — and concerns over the valuation of Wall Street equities — has supercharged interest in listed companies closer to home. It's a trend I think could continue, making funds like the HSBC EURO STOXX 50 ETF (LSE:H50E) worth a close look. This particular one's risen 10.2% in the year to date, outperforming trackers that focus on US and global equities. It comprises 50 of the European Union's largest stocks, including the likes of SAP, UniCredit, LVMH, and Airbus. As you can see from this list, it offers wide exposure by both country and industry. So investors can effectively spread risk and target a broad range of investment opportunities. I'm confident in the ETF's long-term prospects, even amid lingering uncertainty around regional interest rates. The post Consider these 3 top funds to buy this August appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended BAE Systems and Rolls-Royce Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27 minutes ago
- Yahoo
Here's one of the best shares to consider buying as Trump's trade war escalates!
Gold shares like Serabi Gold (LSE:SRB) have been among the most popular stocks to buy as President Trump's trade policy shakes market confidence. Bullion's all-time highs above $3,500 per ounce in April was struck against the backcloth of rising trade tensions. It's a trend I expect to continue. Uncertainty over US trade policy — and the impact of thumping tariffs on economic growth — are natural drivers of safe-haven assets. Gold's receiving extra support, too, from concerns that escalating tariffs will bolster inflation and reduce central banks' appetite to cut interest rates. Gold remains heavily supported by a broadly weaker dollar, uncertainty around tariff announcements and fears about a global recession. Given this situation, Serabi's share price has rocketed 152% over the past year. It's also been propelled higher by the falling US dollar and rising geopolitical tensions. But the Brazilian miner still looks cheap, leading to speculation of further price gains. Its forward price-to-earnings (P/E) ratio is just 3.5 times for 2025. It drops to 3.3 times for next year. Going for gold (stocks) Buying gold shares exposes investors to the risks and unpredictability of the mining industry. This makes it a more dangerous option than buying physical metal, or a fund that simply tracks the gold price. Serabi, which operates in Brazil but reports in US dollars, is also vulnerable to currency volatility. However, this strategy also offers exceptional opportunities to create wealth when the yellow metal surges. Serabi's all-in sustaining costs (AISC) are $1,636 per ounce. If gold prices rise further from current levels of $3,300, every extra dollar will flow straight into the bottom line. This 'leverage effect' means the miner's profits can grow much faster than the bullion price itself (though they can also fall faster when gold drops). The leverage factor partly explains why Serabi's 152% share price gain since last August has outpaced the 36% rise in metal prices. However, it's not the only reason for the company's outperformance. Serabi has also: Reported its highest quarterly production for eight years Raised its mineral resource estimate Made good progress towards more than doubling annual output by 2028 The company's earnings are tipped to rise 87% year on year in 2025. A further 5% rise is tipped for next year. A cheap share I'm considering I hold an exchange-traded fund (the L&G Gold Mining ETF) in my portfolio to capitalise on the leverage effect as gold prices rise. And given its excellent value, I'm also considering buying Serabi shares when I next have cash spare to invest. As well as that having that low P/E ratio, the miner's price-to-earnings growth (PEG) ratio of below 0.1 underlines its cheapness in relation to predicted profits. This is well under the widely accepted value water mark of one. And things remain that way for 2026, with Serabi's PEG coming in at 0.6. While it's not without risk, I think Serabi Gold could be one of the best shares to consider buying in the current climate. The post Here's one of the best shares to consider buying as Trump's trade war escalates! appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Royston Wild has positions in Legal & General Ucits ETF Plc - L&g Gold Mining Ucits ETF. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
Gold Surges to $3350 as Tariffs and Weak Jobs Data Rattle Markets
Happy Friday, traders. Welcome to our weekly market wrap, where we take a look back at these last five trading days with a focus on the market news, economic data, and headlines that had the most impact on gold prices and other key correlated assets— and may continue to in the future. Here's what you need to know: Gold spot prices surged to $3350/oz Friday after a weak Jobs Report and new tariffs triggered a market shock. Earlier in the week, gold briefly dipped below $3300/oz amid Fed uncertainty and profit-taking. The Fed held rates steady but hinted that future moves depend on inflation and tariff-driven risks. Volatility is expected to carry over into next week due to limited economic data and elevated uncertainty. So, What Kind of a Week Has it Been? Financial markets, both as a technical marketplace and as a mass of people, appeared to be riding the waves pretty smoothly for much of this week. Those waves being one of the highest profile weeks, from a macroeconomic data perspective, in some time, as well as the potential pivot-points of the July FOMC meeting and the enactment of another raft of Trump Tariffs against many of the US' foundational trading partners. Gold Slides Early, Then Spikes For gold specifically, trading in the first days of the week was frothy at times as traders positioned themselves for mid-week fireworks and made liquidations to lock in profits before closing the book of business for July. On net, the yellow metal slid slightly lower during these sessions but appeared to have healthy support and ultimately traded comfortably in a band between $3320-3330/oz in the spot market. Very early Wednesday morning, as managers and investors prepared for the FOMC announcement (and, to a lesser extent, the first-look at US GDP for Q2,) gold endured the sharpest sell-off of the week, breaking down support and taking spot below $3300 just before the US cash-market opened and continuing to slide to the weekly nadir at $3270/oz. FOMC Holds Steady, Market Digests The FOMC's July announcement was delivered largely as expected: No rate cut yet, to the chagrin of the US administration among others, and a refusal to directly suggest that a cut in September (to say nothing of the Jackson Hole summit this month) is anything more than a possibility while pointing to the potential inflationary effects of the US' Trump Tariff policy clicking into effect in August as the main reason for needing to 'wait and see.' Gold prices reacted with a moderate rebound, although any rally higher for the precious metal was going to be muted by headwinds following on from the Fed announcement (recall, much of gold's upward mobility in 2025 has been based on an expectation of lower rates.) When Asian markets opened for Thursday's trading, however, the chop-and-change as traders unwound pre-FOMC positions or otherwise locked in positions and/or profits ahead of both month-end and the eleventh hour before the US' threatened trade restrictions had an unexpected effect of pushing gold higher. The yellow metal peeked briefly back above $3300 before the start of US trading, and another US Dollar rally wound gold back to the neighborhood of $3290. Jobs Report Shock and Tariffs Ignite a Rally From here, it looked as if gold would end up closing the week at a moderate loss between Sunday evening's opening bids and Friday's close. But the double-whammy of a slew of the Trump Administration's punitive tariff rates going into effect as of August 1, combined with a very ugly July Jobs Report, has tripped markets into a powder keg. The resulting explosion in volatility has shot gold spot prices sharply higher. July's Non-Farm Payrolls data, expected to show +100K jobs added to the US economy, instead came in at a disappointing 73K while also making drastic downward revisions to the prior two months' reporting. This, as much as anything, has been the catalyst for gold's aggressive spike to end the week, quickly jumping $40/oz to $3340 minutes after the print before picking up another +$10/oz once US markets opened. The primary signals here were clear pluses for gold as an asset. On one hand, gold benefits from the inherent shock of instability and uncertainty the Jobs Report has flushed into markets (which has, at the same time, rocked equities lower.) On the other hand, the dominant read of this data is that it piles much stronger pressure on the Fed to begin easing conditions by cutting rates, another boon for gold. What's Next? This shock has been so acute and aggressive, and has come so close to the end of the week, that it is likely we will see momentum carry on when markets reopen on Sunday evening. If it can hold serve, we may see more risk-off rebalancing into gold positions as the calendar ahead is much, much lighter on consequential macro data. In the meantime, traders, I hope you can get out and safely enjoy your weekend for the next couple of days. After that, I'll see you back here next week for another market recap. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
