Rob McEwen takes shine to Timmins-area properties
McEwen Mining Inc. has completed the purchase of the Black Fox Complex, 65 kilometres east of Timmins, from Primero Mining Corp. The acquisition includes the fully operational Black Fox underground gold mine that is forecast to produce 50,000 ounces in 2018, the Black Fox-Stock mill with a capacity of 2,400 tonnes per day and the nearby Grey Fox and Froome development projects.
The initial purchase price for Black Fox was US$35 million, subject to closing adjustments. A financing completed on September 22 provided the funds to secure the purchase, and provide for future capital projects and exploration at Black Fox.
“We view this purchase as an important strategic step towards our goal of entering the S&P 500 Index,” said Rob McEwen, chair and chief owner. “It increases our forecast 2018 annual production by 20 per cent to 185,000 gold equivalent ounces, allows us to accelerate development towards production of the Lexam VG properties we bought earlier this year (in the Timmins area and) provides us with a base of operations, an experienced workforce, and multiple exploration targets in one of the world’s best gold mining districts…”
Since 2014, capital investment and exploration at Black Fox totaled over US$120 million.
The Black Fox mine was initially operated from 1997 to 2001. It was re-commissioned in 2009 and has operated continuously since then, producing a total of 821,000 ounces of gold from an open pit and underground mine.
McEwen’s other principal assets consist of the San José mine in Santa Cruz, Argentina (49 per cent interest), the El Gallo Gold mine and El Gallo Silver project in Mexico, the Gold Bar project in Nevada, and the Los Azules copper project in Argentina.
Rob McEwen, chairman and chief owner, owns 24 per cent of McEwen.