Colorado-based Pershing Gold will merge with Canadian corporation Americas Silver, the firms announced in a press statement
The definitive agreement aims to “create a low-cost, precious metal growth company in the Americas.”
Investment highlights from the agreement include precious metal production growth in the near-term for the San Rafael mine and increased investment in the development of Relief Canyon.
In the press release announcing the business combination, Pershing president and CEO Steve Alfers said, “We are excited to announce today’s transaction and believe this provides a clear path to the development of Relief Canyon.”
“With the increased financial and operating capabilities of the combined company, our shareholders are better positioned to realize significant value from Relief Canyon as it is advanced through construction and into production”.
Darren Blasutti, president and CEO of Americas Silver, said in the press release:
“With the on-schedule and on-budget construction and rapid commissioning of San Rafael now successfully completed, we are focused on the next leg of growth”.
He added, “Today’s transaction delivers this growth platform, while also providing us with additional precious metal exposure and a near-term operating presence in Nevada.”
The press release said that Pershing will benefit from mitigation of single-asset risk, the ability to finance Relief Canyon at a lower capital cost, and the addition of a “proven mine building and operating team” to develop Relief.
Americas Silver, meanwhile, enjoys the addition of a shovel-ready, high quality project to its portfolio.