Primero finalises Cerro del Gallo development project sale to Argonaut
VANCOUVER (miningweekly.com) – Precious metals producer Primero Mining has completed the sale of its development asset, the Cerro del Gallo mine, in Guanajuato state, Mexico, to fellow Canadian miner Argonaut Gold.
Under the terms of the transaction, Toronto-headquartered Primero pocketed $15-million in cash, which will be put towards permanently reducing the outstanding balance on the company's revolving credit facility (RCF), which stood at $77-million at quarter-end in September.
Primero has reached agreement with its lenders to provide an extension past the RCF maturing date of November 23, posting a guarantee underwritten by metals streamer Wheaton Precious Metals.
The RCF maturity date was extended to December 1, providing the company with the ability to continue negotiations surrounding its strategic review process and the possible divestiture of its flagship San Dimas mine, in Mexico.
Primero reported total debt, which includes its 5.75% convertible debentures totalling $47.25-million, of $1.24-billion, as at the end of September.
Primero said in its latest Management Discussion and Analysis, filed with securities regulators, that the question marks regarding its ability to repay current debt might trigger cross-default provisions under the convertible debentures and the Wheaton Precious Metals silver purchase agreement on San Dimas, raising material unease over its ability to continue as a going concern.
The company became distressed following a prolonged strike at the San Dimas mine earlier this year, and a subsequent unexpected phased ramp-up, which has forced it to cut guidance and sell noncore assets in an attempt to prop up the balance sheet.
Comments
Research Reports
Projects
Latest Multimedia
Showroom
Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...
VISIT SHOWROOM
Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
