Primero Mining has finalized their sale of the Black Fox mine to McEwen Mining.

In separate releases, the two companies acknowledged the now-closed sale for a cash payment of $27.5-million dollars US, plus the expected release of $5-million dollars from “restricted cash that was pledged towards environmental closure liabilities in the amount of $16.5 million, which will be assumed by McEwen.”

Primero says the proceeds have been used to “permanently reduce the outstanding balance on the Company’s revolving credit facility,” adding that the restricted cash will also be applied to the outstanding balance.

The sale consists of the Black Fox underground gold mine—forecasted to produce 50,000 ounces of gold in 2018—along with the Black Fox stock mill, the workforce and the nearby Grey Fox and Froome development projects.

The initial price was $35-million dollars, but were subject to closing adjustments.

McEwen Chairman and Chief Owner Rob McEwen says the purchase is “an important strategic step towards our goal of entering the S&P 500 Index.”

“(Number one), it increases our forecast 2018 annual production by 20 per cent to 185,000 gold equivalent ounces,” he states, “(Number two), it allows us to accelerate development towards production of the Lexam VG properties we bought earlier this year. (Number three), it provides us with a base of operations, an experienced workforce, and multiple exploration targets in one of the world’s best gold mining districts, Timmins, Canada. (Number four), the purchase price was very attractive, given the significant investment made by the previous owner and (number five), the purchase includes large tax pools that will be used to shelter future income.”

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