The Canadian company announced that it has entered into a definitive share exchange agreement to acquire all issued and outstanding shares of Nuevo Silver Inc., pursuant to which Nuevo will become a wholly owned subsidiary of Silverco. As part of the transaction, Nuevo shareholders will receive an aggregate of 16,802,316 Silverco common shares. Nuevo currently holds a 100% interest in the La Negra Mine, located in Querétaro, Mexico, an operating silver-producing mine.
The transaction also contemplates Silverco’s assumption of approximately US$11 million in existing debt associated with the La Negra Mine, as well as future obligations of up to US$12.5 million in milestone payments and US$5 million in contingent payments potentially payable to the project’s former owner. Upon completion of the transaction, former Nuevo shareholders are expected to hold approximately 31% of Silverco’s outstanding shares, while existing Silverco shareholders will retain the remaining 69%.
Closing of the transaction remains subject to customary regulatory and corporate conditions, including final approval from the TSX Venture Exchange (TSXV), which has already conditionally accepted the transaction. This acquisition represents an important strategic milestone for Silverco, strengthening its presence in Mexico’s mining sector through the addition of a producing silver asset to its portfolio.
At ALN Abogados, we are proud to have advised Silverco Mining Ltd. on this significant transaction, contributing our specialized legal expertise in the mining industry and supporting our clients in strategic cross-border operations.
