Avino Buys Back La Preciosa Royalties for US$22 Million

Avino Silver & Gold Mines announced it acquired 100% ownership of its La Preciosa project in Durango by purchasing and extinguishing all outstanding royalties and contingent payment obligations from Deterra Royalties for a total consideration of US$22 million. 

The company stated that the transaction restores full value and control of the project to Avino Silver, enhances its economics, and reduces administrative burdens ahead of the planned start of production. "Avino has seized upon a unique opportunity to buy back all the royalties on La Preciosa. This cornerstone asset is now materially unencumbered. By eliminating the royalty burden immediately prior to commencing production, we believe we will generate meaningful returns on our investment by lowering La Preciosa’s operating cost profile," said David Wolfin, President and CEO, Avino Silver & Gold Mines. 

According to Avino Silver, the consideration for the transaction consists of a US$13.25 million upfront cash payment, which has been funded with Avino Silver's cash on hand, followed by an US$8.75 million payment deferred for one year. The extinguished obligations included a 1.25% to 2.00% royalty on different areas of the project and other contingent payments. 

The company reported it had approximately US$48 million in cash immediately prior to the acquisition. Wolfin noted that strong metal prices have enabled Avino to generate significant cash flow from its current operations, leading to the strongest balance sheet in the company’s history and providing the ability to pursue value-enhancing investments such as the royalty purchase.

Avino Silver noted the extinguished royalty obligations were initially issued to Coeur Mining when Avino acquired La Preciosa in March 2022. Coeur Mining later sold the royalties to Trident Royalties in May 2023, which were then acquired by Deterra through its acquisition of Trident in September 2024.

This transaction comes as Avino Silver is advancing development at La Preciosa, one of the largest undeveloped silver resources in Mexico. The company noted that construction of the main access decline is underway, and it is targeting initial production by the end of 2025.