Americas Gold and Silver (TSX: USA) (NYSE-A: USAS) has announced a $65 million acquisition of the privately owned Crescent Silver mine, located approximately 4 miles southeast of Kellogg, Idaho. This strategic move, disclosed on Thursday, aims to enhance the company’s footprint in Idaho’s Silver Valley region, where it can leverage existing infrastructure and operations.
The Crescent mine has a historical production of over 25 million ounces of silver from 1917 to 1981, with current resources estimated at 3.8 million ounces measured and indicated, plus 19.1 million ounces inferred. The acquisition is expected to facilitate an additional 1.4 to 1.6 million ounces of silver production per year, based on a preliminary assessment, as Americas Gold plans to optimize its operations at the nearby Galena complex.
Funding for the deal will involve $20 million in cash and the issuance of 11.1 million common shares at a deemed price of $4.00 each. To finance the acquisition and further development, the company intends to raise $65 million through an equity financing, with participation expected from major shareholder Eric Sprott.
