Prime Mining obtains Mexican regulatory OK for takeover

On October 14, 2025, Prime Mining announced it has received a clearance decision from the Comision Federal de Competencia Economica (COFECE), Mexico's federal economic competition commission, regarding the previously announced plan of arrangement where Torex Gold Resources Inc. will acquire all outstanding shares of Prime Mining. This approval satisfies a key regulatory condition for the transaction. The company anticipates the arrangement will be completed during the week of October 20, 2025, after which Prime's shares will be delisted from all exchanges.

This news is a material positive development. The acquisition by Torex Gold is the defining event for Prime Mining, and receiving Mexican antitrust approval is one of the final and most critical conditions precedent to closing the transaction. While shareholder (with 99.99% approval) and court approvals were already secured, regulatory clearance in the host country of the asset is never a certainty and represents a significant hurdle.

This announcement effectively removes the last major uncertainty surrounding the deal. For shareholders, this solidifies the value proposition of the share-for-share exchange (0.060 Torex shares per Prime share) and provides a clear and imminent timeline for completion. The investment thesis has now fully transitioned from an exploration/development story to a near-certain arbitrage and post-merger play on Torex Gold. The news is entirely in line with expectations and confirms the transaction is proceeding smoothly to its conclusion.

Prime Mining is a Canadian exploration and development company focused on its wholly-owned Los Reyes Gold-Silver Project in Sinaloa, Mexico. Los Reyes is a high-grade, low-sulphidation epithermal project with a significant historical production record. Since acquiring the project in 2019, Prime has drilled over 220,000 metres, culminating in an updated multi-million-ounce resource estimate in October 2024. The company was advancing towards a Preliminary Economic Assessment (PEA), but all project development work was paused upon the announcement of the acquisition by Torex Gold on July 28, 2025. Notably, drilling at the project was paused on January 28, 2025, due to security concerns in the region, a key risk being mitigated by the transaction with an experienced Mexican operator.