Golden Tag Resources, a Canadian mineral resource exploration company, has agreed to acquire the La Parrilla Silver Mine Complex in Mexico from First Majestic Silver for $33.5 million.

Spanning 69,478 hectares, the La Parrilla Silver Mine Complex is located in San Jose de la Parrilla in Durango. It is a 100% permitted past producing mine complex that features five underground silver mines and an open pit.

La Parrilla, which produced silver, gold, zinc, and lead, was put under care and maintenance by First Majestic Silver in September 2019.

Under the ownership of First Majestic Silver, the associated mill of the silver mine complex produced 34.3 million ounces (Moz) of silver equivalent. The mill had an average annual production of around 3.1Moz of silver equivalent.

The La Parrilla mining project also has an underexplored land package of 69,478 hectares in total.

The infrastructure available at the La Parrilla Silver Mine Complex includes a processing facility of 2,000 tonne per day (tpd) capacity, dry stack filter plant with nearly nine years of tailings capacity, a doré refinery and various other buildings, and a partial underground mining fleet, among others.

Greg McKenzie — President and CEO of Golden Tag Resources said: “We are honoured to partner with First Majestic in the acquisition of La Parrilla, their first producing silver mine, which has produced 34.3 million oz of Ag.Eq of Ag.Eq under their ownership.

“Over the past two years we have evaluated several opportunities for growth in the silver space and La Parrilla is a great opportunity. The mine complex is fully permitted, located only 45 minutes on paved roads from Durango and, only a few hours from our existing San Diego project.

“This is a transformative acquisition for Golden Tag and we strongly believe in the upside resource growth potential of this long-life prolific asset. Our short-term objective is to commence exploration within and near mine workings in order to expand the resource base, to support our ultimate goal & vision of placing the asset back into production.”

The consideration includes an upfront amount of $20 million to be made in the form of Golden Tag Resources’ shares and deferred payments of $13.5 million.

  Durango, First Majestic Silver, Golden Tag Resources, Greg McKenzie, La Parrilla Silver Mine Complex, Mexico, San Jose de la Parrilla