Mexican Silver Mines Ltd. Moves Into Gold Through Takeover

Mexican Silver Mines Inc. has announced that it will be taking over Rio Alto Mines, Inc. Rio Alto is a privately-owned exploration company with a stake in the La Arena gold-copper project in Peru, which it was in the process of acquiring from IAMGOLD Inc. To secure 38.7% of the project, Rio Alto (and now Mexican Silver) is required to invest $30 million to develop a gold mine on La Arena. Acquiring a further 61.3% requires a cash payment of US$48.55 million to IAMGOLD, including the already-made initial payment of $1 million, within two years unless special exemptions are made. The news release contains further details, and notes that the terms of Mexican Silver warrants and stock options are unchanged as a result of this takeover.

As of the time of this post, Mexican silver shares are halted. Yesterday's close was 16 cents.

Mexican Silver Mines Inc.'s Google Finance web page is here.

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