Primero Mining has closed the previously disclosed sale of the Black Fox mine and associated assets, located near Timmins, Ontario, Canada, to McEwen Mining Inc.
Primero will receive total consideration of $32.5 million following a closing net working capital adjustment of $2.5 million. This includes $27.5 million in cash proceeds and the expected release of $5.0 million from restricted cash that was pledged towards environmental closure liabilities in the amount of $16.5 million, which will be assumed by McEwen. The proceeds net of closing costs from the sale of the Black Fox Complex have been used to permanently reduce the outstanding balance on the Company's revolving credit facility.
Primero Mining Corp. is a Canadian-based precious metals producer that owns 100% of the San Dimas gold-silver mine and the Cerro del Gallo gold-silver-copper development project in Mexico.