Heliostar Metals has successfully concluded the acquisition of a 100% interest in Florida Canyon Gold (FCGI) mining assets in Mexico for a cash consideration of $5m (C$6.96m).

The deal includes the San Agustin mine, La Colorada mine, Cerro del Gallo project and San Antonio project.

The acquisition was executed through the purchase of all issued and outstanding shares of FCGI's Mexican subsidiaries.

The transaction was formalised under a share purchase agreement between FCGI and Heliostar dated 16 July 2024.

Located in Durango, Colorado, the San Agustin mine is a gold-silver open-pit and heap leach mining operation. Operations at the mine started in 2017.

The La Colorada mine, located in Sonora, is a gold-silver open-pit and heap leach mining operation, producing gold from residual leaching of gold while on care and maintenance. The mine started operations in 2012.

The Cerro del Gallo project is a gold-silver development project in Guanajuato. It includes 14 titled concessions covering 15,276 hectares (ha) and surface rights to land totalling 445ha.

The San Antonio project is a gold development project in Baja California Sur.

Additionally, the transaction has resulted in the elimination of up to $150m in conditional option payments, along with the issuance of a 2% net smelter returns royalty on the San Antonio project.

This restructuring is expected to enhance Heliostar's financial flexibility and operational focus in the region.

Heliostar CEO Charles Funk said: “Through the acquisition of this portfolio, Heliostar has unhedged gold production from multiple assets and strong pipeline for production growth.

“The combination of production, production growth, resource expansion and the removal of the $20m in milestone payments from Ana Paula establishes Heliostar as a dynamic growth company in 2025 and beyond.

“With the transaction closed, the company expects to provide 2024 production guidance and present expansion plans of the La Colorada mine in the coming weeks.”