Sierra Metals (TSX: SMT) has completed the sale of its Cusi Silver Mine in Mexico. The sales process follows the company back in September placing the mine on care and maintenance, after which the firm immediately began a sales process in order to focus on copper production going forward.
Found in Chihuahua State, Mexico, Cusi last year produced 549,000 ounces of silver, 330 ounces of gold, and 859,000 pounds of lead for a total of 612,000 ounces of silver equivalent prior to being shut down. Production at the mine was down dramatically from the year prior however, with the mine in 2022 producing 1.5 million silver equivalent ounces at an all-in sustaining cash cost of $21.09 per ounce.
The sale of the mine was arranged with a subsidiary of Silverco Mining Corp, whom acquired the asset in exchange for just US$2.5 million in cash and a 2.0% net smelter royalty. Half of the royalty can be repurchased for a cash payment of US$5.0 million.
Going forward, Sierra has indicated it will focus its efforts on the producing Yauricocha mine in Peru and the Bolivar mine in Mexico.
Sierra Metals last traded at $0.83 on the TSX.
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