EMX Royalty (TSXV: EMX) announced that it has acquired, for $3.5 million, a 19.9% equity interest in Rawhide Acquisition Holding, a privately-held Delaware company that owns the Rawhide gold-silver mining operation in Nevada.
In a press release, EMX said it made the strategic investment in Rawhide as part of its acquisition plan focusing on near-term cash-flowing assets.
Gold was discovered at Rawhide in 1906, with intermittent small scale production until Kennecott undertook open-pit mining from 1990 to 2003
The mine is located approximately 50 miles from Fallon and is a fully permitted open-pit, heap leaching operation that is currently producing gold and silver doré.
Rawhide occurs in the prolific Walker Lane gold-silver belt, amidst multiple historic mines that produced more than 1 million ounces of gold.
The property was formerly operated as a subsidiary of Kennecott Corporation and produced 1.4 million ounces of gold and 10.9 million ounces of silver. Later on, Coral Reef Capital, a private equity firm, partnered with the Rawhide mine management team to acquire it from Rio Tinto (ASX, LON, NYSE: RIO) in 2010.
From 2011 to 2018, mining at the site totalled 4.9 million tonnes, with 160,000 ounces of gold and 1.8 million ounces of silver produced.