Alamos Gold Sells its Esperanza Gold Project for US$60 MillionBy Paloma Duran | Mon, 03/14/2022 - 05:50
Alamos Gold sold one of its secondary assets in Mexico to Zacatecas Silver for US$60 million, as Alamos wishes to concentrate on its flagship projects. Meanwhile, Zacatecas Silver says that its new acquisition will strengthen its portfolio of advanced projects in Mexico.
On Feb. 28, Alamos Gold announced the sale of its advance stage and high-grade oxide Esperanza Gold project in Morelos to Zacatecas Silver. Alamos explained that the sale is part of its strategy to monetize its non-core assets while advancing more solid projects such as the Mulatos mine. Through this strategy, Alamos has won almost US$100 million in the past two years, which has been used to further advance its flagship projects.
Zacatecas Silver said it decided to purchase the Esperanza Gold Project because it is a low-cost, non-capital intensive and low-technical risk project. In addition, Esperanza has advanced engineering and metallurgy work done, as well a good relationship with its host communities. The company highlighted that once the transaction is complete, the project will be managed by a highly experienced team of mine builders and financiers. In addition, Alamos will continue to hold a significant stake in the project as Zacatecas Silver’s main shareholder.
Bryan Slusarchuk, CEO, Zacatecas Silver, said this purchase will take the company to the next level. “Currently, we maintain ownership of our existing silver projects but will now also have an advanced stage, high-grade, low-cost gold project with a clear path to permits and production. This is among the highest-grade oxide gold development stage projects in the world of this size. We look forward to working with all stakeholders to advance the project toward production,” said Slusarchuk.
Zacatecas Silver explained that the total cost of the project is US$60 million. Most of these payments are planned after the project advances to commercial production. Initial costs are US$5 million in cash, US$10 million in shares and a US$6 million silver stream. The transaction is expected to be complete in 2Q22, subject to customary closing conditions.