Mining in Mexico: main mergers and acquisitions in 2020

The mining sector led mergers and acquisitions activity in Mexico with 25 announced transactions, representing 20.5% of total transactions in the period, according to Camimex.

The following mining operations stood out:

  • Santacruz Silver Mining, a Canadian mining company, through its subsidiary Carrizal Mining, announced the acquisition of assets in Zimapán from Industrias Peñoles, consisting of a mill installation, infrastructure and 34 mining concessions for 20 million dollars.
  • The Canadian Southern Silver Exploration announced the acquisition of the “Cerro Las Minitas” project, made up of silver deposits for an amount of 15 million dollars.
  • The Canadian Magna Gold Corp. announced the acquisition of the “San Francisco” mine from Alio Gold for 6.6 million dollars.
  • GoGold Resources acquired 5 mining concessions in the “Los Ricos” district.
  • Alianza Minerometalúrgica Internacional announced the acquisition of a 55% stake in Altos Hornos de México.

Mergers and acquisitions

According to the General Directorate of Mining Development of the Ministry of Economy, in 2020, 179 Mexican companies with foreign capital were identified operating in Mexico, of which 70% corresponded to Canadian capital, 11% to US capital and 4% to Chinese capital.

In addition, companies from Japan, the United Kingdom, Australia, Korea, India, Spain and France, among other countries, were registered.

Likewise, in 26 states of the nation there is a presence of 1,190 mining projects, concentrating the largest number of these in Sonora, with 276; Chihuahua, with 157; and Durango, with 126.

On the other hand, a total of 307 projects are in the exploration stage, 78 in production, 43 in development, while 754 projects are in postponement and 8 operations reported closure.

Regarding the transaction market, in Mexico, the firm Seale & Associates announced 122 operations, representing a decrease in volume of 27.8% compared to 2019. The total announced value of transactions was 3,100 million

Among the companies participating in mining mergers and acquisitions in Mexico are: Santacruz Silver, Magna Gold, Equinox Gold, Leagold Mining, Silver Mining, Silver Mining, Evrim Resources, SilverCrest, Comet Resources, Minera Alamos, Southern Silver Exploration, Minera Aurea, Silver Spruce Resources, Premier Gold Mines, Fabled Silver Gold Corp, and Vangold Mining.