Silverco Advances Acquisition Following La Negra Mine Purchase

Silverco Mining is advancing its acquisition of Nuevo Silver following Nuevo Silver’s purchase of the producing La Negra Mine in Queretaro, Mexico, giving Silverco immediate operating production and cash flow. The transaction, including share transfers and assumed debt and milestone payments, highlights Mexico’s growing appeal for mining investment due to experienced management, and high-potential silver assets. This development reflects broader trends in Latin America where M&A activity is surging amid constrained global critical mineral supply and increased capital allocation to predictable jurisdictions.

Silverco Mining is advancing its acquisition of Nuevo Silver following the completion of Nuevo Silver’s purchase of the La Negra Mine in Queretaro, Mexico. The transaction marks a shift for Silverco from a development-focused miner toward a producing, cash-flow-generating operation.

The company stated it plans to acquire 100% of Nuevo Silver, which recently completed a Share Purchase Agreement effective Jan. 18, 2026, to acquire the producing La Negra Mine.

Silverco and Nuevo Silver will continue negotiating a definitive agreement while fulfilling necessary conditions and approvals. These include Silverco completing due diligence, assessing the potential benefits of acquiring Nuevo Silver, obtaining board approval, and securing conditional approval from the TSX Venture Exchange.

Silverco entered into a binding letter of intent dated Jan. 19, 2026, outlining the terms of the acquisition as an independent entity. 

Under the agreement, holders of Nuevo Silver shares will receive 16,802,316 Silverco shares. Upon closing, former Nuevo Silver shareholders are expected to hold roughly 34% of outstanding Silverco shares, while existing Silverco shareholders will retain about 66%. Silverco will assume approximately US$11 million in debt associated with La Negra, US$12.5 million in milestone payments due in 1Q27, and up to US$5 million in contingent payments potentially payable between 2027 and 2028.

Nuevo Silver’s acquisition of the La Negra Mine provides Silverco with immediate access to operating production and cash flow. The mine is currently operating at roughly 55% of its capacity. Silverco plans to increase throughput through the remainder of 2026, diversifying its asset base and adding an experienced management team in Mexico.

Mark Ayranto, CEO, Silverco, said the combination of La Negra and Silverco’s wholly owned Cusi Property, expected to resume operations in 2H26, positions the company to achieve its goal of producing 10Moz AgEq within three years. He described the acquisition as immediately accretive to shareholders, providing both short-term cash flow and long-term growth potential.

LATAM Leads Mining M&A

The Future Minerals Barometer Report 2025, produced by McKinsey & Company and the Future Minerals Forum in partnership with S&P Global Market Intelligence, Global AI, and GlobeScan, identifies a growing imbalance between mineral reserves and investment: more than half of the world’s critical mineral deposits are in Africa, West Asia, and Central Asia, yet these regions receive the least exploration funding, raising concerns about long-term supply security.

Global mining M&As reached nearly US$30 billion in the first three quarters of 2025, with Latin America accounting for about 75% of the total.  Since 2021, Latin America’s mining deal values have risen over 200%, while Africa has seen an almost 80% decline, reflecting investors’ preference for countries with better permitting processes and predictable policies.

McKinsey’s 2024 Global Materials Perspective also points out that mining productivity has grown only about 1% per year since 2018, underscoring the importance of disciplined capital management and regulatory certainty.

Investment patterns indicate a broader recalibration of risk. GlobeScan’s CEO Chris Coulter noted that Africa, West Asia, and Central Asia face major hurdles but also offer opportunities if policy, infrastructure, and financing constraints are addressed. 

The report estimates that roughly US$5 trillion in investment will be required by 2035 to meet critical mineral demand, yet current exploration spending remains 40–50% below necessary levels. With an average 16-year gap from discovery to production, many projects identified today are unlikely to make a significant contribution to 2030 or 2035 climate targets.

Recent Mining Transactions in Mexico

After years of relatively modest investment, Mexico is now seeing a surge in mining M&As. Among the latest transactions are Pan American Silver completed its US$2.1 billion acquisition of MAG Silver, significantly increasing its exposure to high-grade silver through MAG’s 44% stake in the Juanicipio Mine in Zacatecas, one of Mexico’s premier silver-gold operations. Meanwhile, Torex Gold secured full ownership of the Los Reyes gold-silver project in Sinaloa through a US$327 million takeover of Prime Mining. Los Reyes is a development-stage asset with over 1.5Moz of gold in indicated resources, allowing Torex to expand its operational footprint and diversify its resource base.

In September, First Majestic Silver announced its plan to acquire Gatos Silver in an all-stock transaction valued at US$970 million, uniting the assets of both companies across three silver-producing districts. Gatos’ Cerro Los Gatos mine will join First Majestic’s portfolio alongside the San Dimas mine in Durango and the Santa Elena operation in Sonora. The Los Gatos district comprises 14 identified mineralized zones, including three silver-lead-zinc deposits: the Cerro Los Gatos mine, the Esther deposit, and the Amapola deposit.

More recently, Coeur Mining announced its acquisition of New Gold in an all-stock transaction valued at approximately US$7 billion, forming a major North American mining company. Coeur stated that the acquisition will strengthen its balance sheet, enhance cash flow, and provide greater operational flexibility. The addition of New Gold’s assets is expected to lower production costs and improve profit margins.