Dowa amends Los Gatos joint venture agreements with Gatos Silver
On December 19, 2024, Gatos Silver, Inc. (“Gatos Silver”) announced that it entered into amended and restated agreements with Dowa Metals & Mining Co., Ltd. (“Dowa”) regarding the Los Gatos Joint Venture (the “LGJV”) for the Cerro Los Gatos mine.
The Cerro Los Gatos mine is located approximately 128 kilometers south of the state capital of Chihuahua City, in Northern Mexico and consists of two identified silver discoveries, the Cerro Los Gatos zone and the Esther zone, as well as 14 other priority targets with over 100 kilometers of outcropping quartz and calcite veins. The area is characterized by a predominant silver-lead-zinc mineralization.
Effective on January 1, 2025, the amended agreements expand Gatos Silver’s management rights within the LGJV, which will result in Gatos Silver being able to fully consolidate the financial statements of the LGJV rather than accounting for its investment in the LGJV under the equity method of accounting as is currently required.
The agreements strengthen Dowa’s zinc concentrate offtake rights, including amending pre-defined commercial terms, which continue to be based on world benchmarks, and commitments regarding concentrate production and product quality. The Amended Agreements also update the terms for management services provided by Gatos Silver in its oversight of the LGJV, reduce supermajority voting requirements and provide Gatos Silver with a new sole-funding right for significant mine or plant modifications or expansions, among other things.
The ownership interests of Gatos Silver and Dowa in the LGJV are unchanged, at 70% and 30%, respectively.
Further information can be found on Globe Newswire’s website.
Gatos Silver is a silver dominant exploration, development and production company that discovered a new silver and zinc-rich mineral district in southern Chihuahua State, Mexico.
Dowa, a subsidiary of DOWA Holdings Co., Ltd., is an active nonferrous metal manufacturer whose principal products include gold, silver, copper, zinc, zinc alloys, lead platinum, palladium, indium, bismuth, tellurium, sulfuric acid and other metals.