Torex Gold Acquires Prime Mining in $449 Million Deal
Torex’s $449M acquisition of Prime Mining reshapes Mexico’s gold-silver landscape and adds major firepower to its development pipeline.
In a blockbuster transaction that’s sending ripples through the mining industry, Torex Gold Resources Inc. is acquiring Prime Mining Corp. in an all-share deal that values Prime at approximately C$449 million. With this move, Torex gains 100% ownership of the Los Reyes gold-silver project in Sinaloa, Mexico, a richly mineralized property boasting both open-pit and underground potential, alongside a storied mining legacy that dates back to the 1700s.
The strategic rationale is clear. For Torex, this deal not only bolsters its already commanding presence in Mexico’s Guerrero Gold Belt but significantly expands its resource base. The addition of Los Reyes increases Torex’s Measured and Indicated gold resources by 32% and its Inferred resources by 44%, along with a substantial 75.6 million ounce boost in silver exposure. More importantly, it positions Torex as a more diversified producer with long-term growth visibility across gold, silver, and copper.
Torex shareholders are betting on proven execution. This is the same company that delivered the Media Luna and El Limón Guajes mines with discipline and precision, completing both projects with minimal budget overruns. Now, with Media Luna ramping up commercial production and generating strong free cash flow, Torex is turning its sights toward building the next high-margin mine. With its in-country expertise, permitting credibility, and established community relationships, Torex appears well-equipped to fast-track Los Reyes through development.
For Prime Mining shareholders, the transaction delivers a meaningful premium—32.4% to the 30-day volume-weighted average and 18.5% to the most recent TSX closing price. More than a payout, it’s an invitation. They’ll hold about 10.7% of the combined entity and gain exposure to Torex’s Morelos Complex, Mexico’s largest gold producer in 2024, along with the company’s full project pipeline and financial firepower.
This combination also strengthens the capital markets profile of the new Torex. With a market cap of nearly US$2.7 billion, enhanced liquidity, and analyst coverage, the company becomes more attractive to institutional investors. Prime’s backers—including notable figures like Pierre Lassonde—are also throwing their weight behind the merger. Lassonde, a mining titan, publicly voiced his confidence in the deal, calling it an ideal match of high-grade geology with high-performance management.
Los Reyes itself is a jewel hiding in plain sight. The project hosts 1.49 million ounces of gold and nearly 54 million ounces of silver in the Indicated category, with a further 538,000 ounces of gold and 21.6 million ounces of silver Inferred. These grades are no accident—historic mining in the area saw exceptionally high returns, with grades exceeding 10 grams per tonne gold and 500 grams per tonne silver. Prime has already drilled more than 221,000 metres and invested over $64 million since acquiring the project in 2019. The discovery potential remains enormous, especially in the high-grade Guadalupe East, Central, and Z-T zones, all of which remain open along strike and depth.
Security concerns in Sinaloa earlier this year led to a temporary pause in drilling, but rigs remain on standby. Torex’s acquisition brings not only capital and operational know-how but also a robust social license toolkit honed over 15 years of Mexican operations. Torex’s reputation for managing complex community relationships and delivering on ESG commitments could be pivotal in advancing Los Reyes into production without delay.
The timing of this deal is no coincidence. Just weeks earlier, Torex announced an all-cash acquisition of Reyna Silver Corp., scheduled for shareholder approval in August. With both Los Reyes and Reyna Silver in its pocket, Torex is methodically assembling a development portfolio that positions it as a major player across all stages of the mining lifecycle. It’s no longer just a gold miner with a single asset—it’s a precious metals growth machine with optionality and leverage in a geopolitically stable jurisdiction.
The transaction, structured as a court-approved plan of arrangement, is expected to close in the second half of 2025, pending shareholder approval, regulatory clearances, and antitrust review in Mexico. Prime’s management, board, and insiders, who collectively own 23% of the company’s shares, have signed voting support agreements. The fairness opinions from both CIBC and BMO give institutional investors further confidence in the deal’s financial merits.
Technically, the asset synergies are strong. Torex can integrate Los Reyes into its operational and exploration teams almost immediately. The company’s Media Luna mine is already producing gold, silver, and copper, and its strong balance sheet—backed by significant free cash flow from Media Luna—allows Torex to fund Los Reyes through to production without raising external capital or issuing more equity.
The deal also reflects a broader industry trend toward consolidation, with mid-tier producers looking to secure scalable assets in friendly jurisdictions. As the cost of capital rises and ESG requirements grow more stringent, assets like Los Reyes, which combine grade, scale, and low geopolitical risk, become increasingly valuable. Torex isn’t just buying ounces—it’s buying margin, momentum, and a platform for future discovery.
This acquisition puts Torex on a fast track toward becoming a diversified, Americas-focused gold and silver powerhouse. And for Prime Mining, it validates the work done since 2019 while ensuring that Los Reyes reaches its full potential under a company with a proven track record. It’s a win for shareholders on both sides and a definitive statement that Torex plans to lead Mexico’s next generation of precious metal development.
Disclosure:
The author of this article does not own any shares of Torex Gold Resources Inc., Prime Mining Corp., or any other companies mentioned in this article. This article was generated with the assistance of artificial intelligence and without direct involvement or input from the companies discussed. The information presented is based on publicly available data and does not reflect any proprietary or confidential information from Torex Gold Resources Inc., Prime Mining Corp., or any other entities mentioned.