Avino Silver & Gold Mines (TSX, NYSE-A: ASM) said Monday it has bought down and extinguished all royalties and remaining payments for full ownership of its La Preciosa project in Durango, Mexico.
It paid $13.25 million up front and agreed to an $8.75 million deferred payment in a year. The move is aimed at lowering the project’s operating cost profile ahead of mining to start this year. Management views the transaction as beneficial for net asset value. It says it simplifies La Preciosa’s cost structure and retains more value for shareholders and communities.
“This cornerstone asset is now materially unencumbered,” CEO David Wolfin said in a press release. “This transaction represents a unique investment opportunity for Avino, as operators rarely get the chance to increase project value through the purchase of previously granted royalties.”
In Mexico, producers have been consolidating and…
