Prime Mining Closes Arrangement with Torex Gold

The most recent news, dated October 22, 2025, announces that Prime Mining Corp. has closed its previously announced plan of arrangement with Torex Gold Resources Inc. Under the terms of the agreement, Torex has acquired all outstanding shares of Prime Mining. Prime shareholders will receive 0.060 of a common share of Torex for each Prime share held. As a result of the completed transaction, Prime Mining's shares are expected to be delisted from the Toronto Stock Exchange, the OTCQX, and the Frankfurt Stock Exchange, and the company will apply to cease being a reporting issuer.

This news is the final, formal conclusion of the acquisition process initiated on July 28, 2025. While the event is fundamentally material as it marks the end of Prime Mining as a standalone entity, its market impact was largely realized when the deal was first announced.

• Progression: The acquisition was well-telegraphed. Following the July 28 announcement, the company methodically released news confirming key milestones: mailing of meeting materials (Sept 9), proxy advisory firm recommendation (Sept 18), overwhelming securityholder approval (Sept 29), final court order (Oct 3), and Mexican antitrust approval (Oct 14). This final news release is the expected outcome of that process.
• Valuation: The deal provided an immediate and significant premium to shareholders at the time of the announcement (18.5% premium to the closing price on July 25, 2025). The stock gapped up from $2.17 to close at $2.44 on the day of the announcement and has since traded in relation to the value of the exchange ratio and Torex's share price.
• Impact: The impact of this specific news release is procedural rather than speculative. It confirms the deal is done, eliminating any remaining arbitrage or deal-break risk. The event is positive for shareholders who held the stock prior to the acquisition announcement, as they have now formally locked in the premium offered by Torex. For investors, the story of Prime Mining is now complete, and their future returns are tied to the performance of Torex Gold stock.

Prime Mining Corp. was a Canadian mineral exploration company focused on its 100%-owned Los Reyes Gold-Silver Project in Sinaloa State, Mexico. Los Reyes is a high-grade, low-sulphidation epithermal project with a significant history of small-scale mining. Since acquiring the project in 2019, Prime invested over $66 million in exploration, drilling over 221,000 metres. This work culminated in a major resource update on October 15, 2024, which defined a multi-million-ounce gold-equivalent resource and included an inaugural high-grade underground component. The company's progress was impacted by a halt in drilling on January 28, 2025, due to security concerns in the region. Prior to the acquisition, Prime was advancing towards a Preliminary Economic Assessment (PEA).