The transaction expands GSilver’s operations from two mines and one production facility to five mines and three production facilities. The Topia mine, located in Durango, Mexico, is currently producing concentrates containing silver, lead, zinc, and gold, and it has significant lead financing orders. Topia’s total 2021 silver equivalent production was more than 1.1 million oz. Total 2021 silver equivalent production at the Valenciana and San Ignacio mines and Cata processing plant was more than 1 million oz.

The total consideration is $14.7 million; satisfied by $6.7 million in GSilver Shares and $8 million in cash. “This acquisition will prove instantly accretive; the Topia Mine is currently producing and will immediately lift GSilver’s production profile,” GSilver President Ramon Davila said. “Within the Guanajuato mining district, the San Ignacio and Valenciana mines were put on care and maintenance less than eight months ago due to a lack of available tailings facilities. GSilver plans to swiftly re-start production from these mines and process the mineralized material using the excess capacity at our nearby El Cubo production facilities. This acquisition keeps us on course to expeditiously establish GSilver as a mid-tier precious metals producer in Mexico.”

Great Panther said the sale of the Mexican silver mines will allow it to focus on maximizing the full potential of the Tucano gold mine in Brazil and complete its pivot to gold, which started in 2019.