As per the terms of the agreement, Primero will acquire all the issued and outstanding ordinary shares of Cerro Resources. Each Cerro share will be exchanged for 0.023 of a Primero share.
Cerro will transfer non-Cerro del Gallo assets to its subsidiary Santana Minerals as a part of the agreement, of which Primero will earn 19.9% stake paying $4m and Cerro’s shareholder will retain 80.1% stake.
After the completion of the transaction, Primero, as a part of the merged entity, will develop prospective Cerro del Gallo gold/silver project in Mexico.
Cerro del Gallo is a gold-silver deposit with 1.15 million ounces of in-pit gold equivalent proven and probable reserves and 1.58 million ounces of in-pit gold equivalent measured and indicated resources.
