Bear Creek Mining Corp. has entered into a definitive agreement with Equinox Gold Corp. to acquire a 100% interest in the Mercedes gold-silver mine located in Sonora, Mexico.
The Mercedes acquisition will:
- Add a high quality, low cost, cash flowing asset to Bear Creek’s project portfolio.
- Provide a source of free cash flow to help fund development and construction of the Corani silver mine.
- Offer excellent near-mine and regional exploration upside.
- Diversify Bear Creek’s asset base with mix of jurisdictions, project stages and commodities while retaining a precious metals focus.
- Create an opportunity for re-rating of the company’s shares to align with junior precious metals producers.
- Enhance the company’s share registry and market profile with the addition of two new strategic stakeholders.
“Moving from a development stage company into a precious metals producer is an important step in Bear Creek’s evolution”, said Anthony Hawkshaw, President and CEO. “The acquisition of Mercedes provides our shareholders a cash flowing asset with expansion potential and participation in a land package with an exciting exploration outlook. Furthermore, the financial and technical support provided by Sandstorm reinforces management’s conviction that Mercedes will be a positive contributor to each of our treasuries; a positive contribution that for Bear Creek will, in large part, be directed to the continuing development of Corani.”