Torex Gold Announces Completion of Prime Mining Acquisition
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On October 22, 2025, Torex Gold announced the completion of its acquisition of Prime Mining Corp. This transaction was executed via a plan of arrangement, resulting in Torex issuing approximately 10.2 million common shares. Former Prime Mining shareholders now own approximately 10.6% of the combined company.
The key asset acquired is the advanced-stage Los Reyes gold-silver project in Sinaloa, Mexico. According to the release, Los Reyes has Indicated Resources of 1.5 million ounces of gold and 54.0 million ounces of silver, with an additional Inferred Resource of 538,000 ounces of gold and 21.6 million ounces of silver.
Torex CEO Jody Kuzenko stated, "With our track record of success operating in Mexico, together with a highly skilled projects team and strong balance sheet, we are solidly positioned to unlock the full potential of Los Reyes as we advance it through development and into production over the coming years." The company plans to release a preliminary economic assessment (PEA) for Los Reyes by mid-2026.
This news is the formal conclusion of a transaction first announced on July 28, 2025. As such, the market has had nearly three months to digest and price in the acquisition. The stock has performed exceptionally well since the initial announcement, rising from approximately $41 to over $58. Therefore, the completion itself is not new material information but rather a positive confirmation that the company is executing its stated strategy. The rating is Routine - Positive.
The acquisition itself is a cornerstone of Torex's strategic pivot from a single-asset producer focused on building out its Morelos Complex to a diversified, multi-asset company. The historical news flow clearly outlines this transition: - Media Luna Completion: Throughout early 2025, news focused on the completion and commissioning of the Media Luna project. This was a period of significant capital expenditure and negative free cash flow (Q1 2025 FCF was -$133.3M USD). Commercial production was declared on May 1, 2025. - Operational Outperformance: Subsequent operational updates, particularly for Q3 2025 (October 9), have been exceptionally strong. The Media Luna ramp-up is tracking ahead of plan, with mining and processing rates exceeding targets. This demonstrated performance de-risked the company's core asset and signaled the start of significant free cash flow generation, which was guided to begin in mid-2025. - Pivot to M&A: Backed by a strengthening balance sheet and a surging share price, Torex moved quickly on M&A. It acquired Reyna Silver in an all-cash deal (closed August 2025) for its early-stage exploration portfolio, followed by the much larger, all-share acquisition of Prime Mining.
This latest news solidifies the acquisition of a significant development asset. By using its shares as currency, Torex preserves its cash flow to pay down the debt incurred for the Media Luna build and to fund ongoing development at its EPO deposit. While strategically positive, the acquisition brings the major risk of the Los Reyes project, where drilling was halted in January 2025 due to security concerns in the region—a risk that cannot be overlooked.
Torex Gold is an intermediate gold producer whose sole producing asset is the 100%-owned Morelos Complex in the Guerrero Gold Belt of Mexico. For the past several years, the flagship project has been the development of the Media Luna deposit, which involved building out an underground mine and adding flotation circuits to the existing processing plant. This project is now in the final ramp-up phase. With the acquisition of Prime Mining, the company's new flagship development project is the advanced-stage Los Reyes gold-silver project in Sinaloa, Mexico. Torex's strategy is to use the robust cash flow from the Morelos Complex to become a diversified, Americas-focused precious metals producer.