Canadian mining company Silverco Mining Ltd. announced the execution of a definitive share exchange agreement to acquire all issued and outstanding shares of Nuevo Silver Inc. in a transaction valued at approximately CAD$168 million, pursuant to which Nuevo Silver Inc. will become a wholly owned subsidiary of Silverco. As part of the transaction, Nuevo Silver shareholders will receive an aggregate of 16,802,316 common shares of Silverco. Nuevo Silver currently holds a 100% interest in the La Negra mine, located in Querétaro, Mexico, an operating silver-producing mine.
As part of the transaction, Silverco will assume Nuevo Silver’s existing debt of approximately US$11 million related to the currently operating La Negra mine. In addition, Silverco will assume future obligations of up to US$12.5 million in milestone payments and up to US$5 million in contingent payments potentially owed to the former owner of the La Negra mine.
Following completion of the transaction, former Nuevo Silver 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 granted conditional acceptance of the transaction. This acquisition represents a significant strategic step for Silverco, adding a producing silver asset in Mexico to its portfolio and strengthening its presence within the regional mining sector.
At ALN Mining Law Firm, we are proud to have advised Silverco Mining Ltd. on this important transaction, contributing our specialized legal expertise in the mining industry and supporting our clients in strategic cross-border transactions.
