Precious metals miner Americas Gold and Silver has announced a transaction with Eric Sprott and Paul Andre Huet, under which it will require the remaining 40% interest in the Galena complex in Idaho, US.

Upon the closing of the acquisition, Huet will be appointed chairperson and CEO of Americas Gold and Silver, while Darren Blasutti will remain as president.

Galena is located within the prolific Silver Valley and is one of the largest underground, high-grade, operating silver mines in North America, having produced more than 240-million ounces of silver with peak production of more than five-million ounces a year of silver in the early 2000s.

Consolidation of the joint venture will streamline operational and financial decision-making, providing for a focused vision at Galena centered around optimising and expanding the operation through the utilization of existing infrastructure.

“I am excited to consolidate the Galena Complex and want to thank Mr. Eric Sprott for his partnership in growing Galena to one of the largest, high-grade, silver mines in North America,” stated Blasutti.

He added that he believed Huet was the correct executive to lead Americas during its next phase of growth.

“For the past nine months, I have acted as Sprott’s technical representative for the Galena JV and have witnessed firsthand both a tremendous team and resource base that has been undercapitalised due to a difficult silver price environment. I am confident that based on my team’s track record of unlocking the full potential of mining operations, we can accomplish this again and deliver significant value to Americas’ shareholders,” commented Huet in a statement.

Under the terms of the definitive agreement, the owners of Sprott will receive 170-million common shares of Americas and $10-million in cash on closing of the acquisition.

Based on the price of the subscription receipts of C$0.40, the share consideration represents C$68-million.

The company plans to complete a bought-deal private placement to raise C$40-million at an issue price of C$0.40 per subscription receipt. This was later upsized to C$45-million.

Americas is also in advanced discussions with numerous lenders with respect to a debt financing to restructure its balance sheet and is in the process of evaluating indicative terms received.