Fresnillo (LSE:FRES), the world's largest primary silver producer, has agreed to acquire 5% of Sinda through a private placement running concurrently with Sinda's initial public offering and NYSE listing in the United States.
The investment targets a large-scale, high-grade silver-gold greenfield discovery in Mexico's historic Guanajuato epithermal silver belt, directly adjacent to one of Fresnillo's own advanced exploration projects.
Fresnillo will pay the same per-share price as IPO investors, with the exact figure to be set at IPO pricing.
Fresnillo described the rationale as enhancing exposure to attractive geological silver districts complementary to its existing organic portfolio.
Under an investor rights agreement to be signed at closing, Fresnillo receives a participation right allowing it to maintain its pro-rata stake, provided it holds above a specified ownership threshold, alongside customary standstill provisions and a lock-up on the shares acquired.
The placement closes only if Sinda's IPO completes successfully.
Sinda's Form S-1 registration statement has been filed with the U.S. Securities and Exchange Commission but has not yet been declared effective, meaning the timing of the IPO and concurrent closing remains subject to SEC review.
