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Primero closes sale of Black Fox Mine in Timmins

Complex is now in hands of McEwen Mining
The sale of Black Fox Mine, from Primero to McEwen, is now complete. (Photo supplied)

Primero Mining Corp. has closed the sale of Black Fox Mine and complex, located in Black River-Matheson near Timmins, to McEwen Mining.

In an Oct. 6 announcement, the company said, as part of the deal, it would receive $32.5 million following a closing net working capital adjustment of $2.5 million.

This includes $27.5 million in cash proceeds and the expected release of $5 million from restricted cash that was pledged towards environmental closure liabilities in the amount of $16.5 million, which will be assumed by McEwen.

Proceeds from the sale have been used to reduce Primero’s debt.

Primero’s remaining assets are the San Dimas gold-silver mine and the Cerro del Gallo gold-silver-copper development project, both of which are in Mexico.