Coeur Mexicana, a unit of precious metals producer Coeur Mining, has signed a deal with a Fresnillo subsidiary to buy mining concessions in Mexico.
As per the agreement, Coeur will pay $25m in cash and future royalty on specific ounces found on the acquired concessions.
For every new resource ounce of gold equivalent (AuEq) found between 450,000 ounces and two million AuEq ounces, a royalty payment of $25 per ounce will apply to the concessions.
The concessions are located next to Coeur’s Palmarejo gold-silver complex in Chihuahua, Mexico, and they collectively cover around 7,000 acres.
Coeur said the assets comprise claims that are close to two main zones that make up Palmarejo’s current footprint.
The first group of concessions covers the southeast expansions of the Independencia and Nacion deposits, which are the sites of active mining.
