Primero Mining is announcing they have entered into an agreement with McEwen Mining Inc. to sell its interest in the Black Fox mine and associated assets located near Timmins.

Under the terms of the Agreement, Primero will receive consideration of $35 million, in cash, subject to certain closing adjustments. Definitive documentation is expected to be completed before the end of this month.

“The proposed transaction for the divestiture of Black Fox is consistent with our previously disclosed strategic review process to maximize value for shareholders,” said Joseph Conway, President and Chief Executive Officer.

“I would like to thank everyone at Black Fox for their commitment and dedication, and we wish them continued success as part of the McEwen team. We will continue to advance definitive documentation and work closely with the team at site to ensure a smooth transition.”

Primero expects to use the proceeds from the Transaction to reduce the Company’s total debt position. The Transaction is subject to customary closing conditions and is expected to close in the third quarter of 2017. Scotiabank acted as financial advisor to Primero.

For more on Primero Mining, CLICK HERE for their website.

CLICK HERE to see Primero’s full release.

Filed under: Local News