TORONTO (miningweekly.com) – TSX- and NYSE-listed Primero Mining's Mexican subsidiary Primero Empresa Minera (PEM) has been reinstated to the Mexican customs registry and the company has started selling all inventoried silver.
This included about two-million ounces, of which 1.2-million ounces would be delivered under the silver purchase agreement with Silver Wheaton and 800 000 oz would be sold into the spot market.
The proceeds from the silver sales would be recorded as third-quarter revenue.
Primero delivered a threshold of 3.5-million ounces of silver a year to Silver Wheaton, after which it could sell half of the silver produced at San Dimas at spot prices for its own account until August 5, when the silver purchase agreement threshold reset.
PEM's import and export licences were suspended by the Mexican customs authorities in May owing to a discrepancy over the company's address related to its corporate office relocation from Mexico City to Durango. The company was able to source necessary supplies locally so that the San Dimas mine and mill continued to operate uninterrupted.
The silver spot price on Thursday traded at $14.64/oz, near price levels last seen in 2009.
Primero's TSX-listed stock closed 11.29% higher on Thursday at C$3.55 each.