Concurrently, the TSX- and NYSE-listed precious metals miner concluded a $30-million private placement investment by Eric Sprott, who now owns about 11.3% of its shares on an undiluted basis.

“We look forward to commencing our work with the operating team at Jerrit Canyon to create value for our shareholders and welcome Eric Sprott as a continued significant shareholder in First Majestic going forward,” commented president and CEO Keith Neumeyer.

He added in a statement that First Majestic would be communicating its plan for Jerritt Canyon in the near future.

Jerritt Canyon, which was discovered in 1972, has been in production since 1981 having produced more than 9.5-million ounces of gold over its 40-year production history.

The mine currently operates as an underground mine and has one of three permitted gold processing plants in Nevada that uses roasting in its treatment of ore. This processing plant has a capacity of 4 500 t/d and is currently operating at an average rate of about 2 200 t/d, owing to limited ore production from two underground mines.

The property also consists of a large, underexplored land package consisting of 30 821 ha.