The Black Fox Mine is located outside of Matheson, Ontario, Canada in the Timmins Gold District. The Black Fox Mine began operating as an open pit mine (depleted in 2015) and transitioned to underground operations in 2011. The project produced approximately 62,000 ounces of gold in 2016.
McEwen Mining Inc. (TSX:MUX, NYSE:MUX) announced the acquisition of the Black Fox Mine from Primero in August 2017 and is expected to close in the third quarter of 2017.
Sandstorm has a gold stream agreement to purchase 8% of the life of mine gold produced from Black Fox and 6.3% of the life of mine gold produced from the Black Fox extension (which includes a portion of the Pike River concessions) for a per ounce cash payment equal to the lesser of US$524 and the then prevailing market price of gold.
Sandstorm originally acquired a 12% stream on Black Fox from Brigus Gold Corp. for an upfront payment of US$56.3 million. The transaction included a partial buyback option which Brigus exercised in October 2012 for US$24.4 million to buyback 4% of the stream from Sandstorm. Primero acquired Brigus Gold in March 2014.