High silver prices are resulting in consolidation within the junior mining sector, with the latest transaction seeing Highlander Silver (TSX: HSLV) acquire Bear Creek Mining (TSXV: BCM) to establish what is defined as a ‘leading growth company’ within the silver sector.
The transaction will see Highlander’s San Luis gold-silver project in Peru with indicated resources of 356,000 ounces of gold and 8.4 million ounces of silver brought together with Bear Creek’s Corani project in Peru and their operating underground Mercedes gold-silver mine in Mexico.
“I am extremely excited to realize the combination of Bear Creek with Highlander Silver, which will result in a robust, silver-focused enterprise with a significant mineral inventory, a clean balance sheet and a clear path to growth lead by our flagship Corani Project,” commented Eric Caba, CEO of Bear Creek.
Bear Creek’s Corani project hosts proven and probable reserves of 229 million ounces of silver, while measured and indicated resources, inclusive of reserves, sits at 323 million ounces. Inferred resources add a further 84 million ounces of silver to the mix. The Mercedes Mine meanwhile last year saw the production of 40,220 ounces of gold and 217,676 ounces of silver.
“I am delighted to present this transaction to our shareholders, which allows us to scale into the emerging structural bull market for silver beyond our bonanza grade San Luis project. The Corani Project is already one of the largest primary silver deposits in the world yet still offers robust growth and discovery potential,” commented Daniel Earle, CEO of Highlander Silver.
The acquisition of Bear Creek is said to have followed a strategic review of Bear Creek over the past nine months to review alternatives for the company. Over 100 parties are said to have been involved in the process, with Highlander Silver offering the best proposal for shareholders.
Under the terms of the arrangement, Bear Creek shareholders are set to receive 0.1175 common shares of Highlander Silver for each share of Bear Creek held. A total of 34.5 million shares of Highlander are expected to be issued in connection with the arrangement.
As part of the transaction, Highlander has entered into arrangements with Royal Gold and Equinox to settle outstanding debts owed by Bear Creek, with Royal Gold to receive cash consideration of US$6.2 million and Equinox to receive cash consideration of US$1.6 million. Royal Gold will also receive a 1.75% NSR on Corani and a 2% NSR on Mercedes, while Equinox will receive a 0.5% NSR on Corani.
The transaction values Bear Creek at an estimated $141.7 million based on Thursday’s closing prices.
The transaction remains subject to shareholder approval for both companies, along with customary regulatory and court approvals. A termination fee of $8 million is in play.
The transaction is currently expected to close in Q1 2026.
Highlander Silver last traded at $3.80 on the TSX.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
