Primero Mining Corp. announced that the Company has entered into an agreement with McEwen Mining Inc. to sell Black Fox mine and its associated assets located near Timmins, Ontario, Canada.
As part of the Agreement, Primero will receive US$35 million in cash, excluding possible closing adjustments. Final 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 the proceeds from the sale will reduce the Company's total current debt. The Transaction is expected to close in the third quarter of 2017.