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Friday, March 31, 2023

Gatos Silver (NYSE: GATO) Signs Definitive Agreement With Dowa Metals & Mining

Gatos Silver, Inc. (NYSE: GATO) revealed Tuesday that it has finalized an agreement with Dowa Metals & Mining Co., Ltd. The definitive agreement will also Gatos to use its right to buy back an extra 18.5% of the Los Gatos Joint Venture (LGJV). As a result of the buyback, Gatos Silver’s LGJV holdings will rise from 51.5% to 70%.

Furthermore, this agreement also provides an opportunity for Gatos to put a stop to the $60 million working capital facility (WCF) of LGJV. The attributable portion of the WCF is $42 million. Gatos Silver and Dowa anticipated the buyback and WCF termination to be executed by the end of March 2021.

Shares of Gatos Silver (NYSE: GATO) went down 1.26% at $12.52 during the trading session of Monday. The firm has reported a trading volume of 276.58K as compared to the average volume of 890.18K. The share of the firm fluctuated between the 52-week low range of $5.78 and the 52-week high range of $24.00. The market capitalization of Gatos Silver reached $759.71 million at the time of writing.

The firm has disclosed that the signing of an agreement with Dowa is the greatest accomplishment of the firm as it signifies the accomplishment of two significant use of earnings targets set out from the firm’s recent initial public offering. Furthermore, the holdings of GATO in the whole Los Gatos mineral district to 70% and terminating the WCF are considerable indicators and value-added for the firm.

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