Silver Standard Resources to Sell Mexico Mine
Silver Standard Resources will soon divest a large asset, if a new deal goes through as planned. The company announced that it has reached agreement to sell its San Agustin project in Mexico to U.S.-based but Canada-listed Argonaut Gold. All told, the transaction is worth $75 million.
According to Argonaut Gold, San Agustin has an indicated resource of 1.6 million ounces of gold and 48 million silver ounces.
Silver Standard Resources will receive $15 million in cash at closing, along with $30 million worth of Argonaut Gold shares at closing, $10 million in cash due in six months, and $20 million in cash due in 18 months. It will also reap a 2% royalty on sulphide ore produced at San Agustin.
The transaction is expected to close in the first quarter of 2014. It is subject to approval from the relevant regulatory bodies.
At the end of its most recently reported quarter, Silver Standard Resources had C$602 million ($577 million) in cash and short-term investments.
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