SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2017

SUBSEQUENT EVENTS.

SUBSEQUENT EVENTS

NOTE 16 SUBSEQUENT EVENTS

Acquisition of Black Fox

On October 6, 2017, the Company announced the completion of the acquisition of certain assets and liabilities from Primero by the way of the Asset Purchase Agreement (“Agreement”) dated August 25, 2017. The assets primarily include the Black Fox mine site, mill, property, plant and equipment and adjacent exploration properties located in Township of Black River‐Matheson, Ontario, Canada. The liabilities primarily include reclamation obligations and certain assumed contracts related to the acquired assets. Pursuant to the Agreement, the Company acquired these assets and liabilities in exchange for cash consideration of $27.5 million.

The Company concluded that the acquired assets and assumed liabilities constitute a “business” under U.S. GAAP and accordingly, the acquisition will be accounted for as a business combination rather than an asset acquisition. Due to the timing of the acquisition being completed subsequent to the period end, the determination of the fair values of the assets acquired and the liabilities assumed had not been finalized, so the allocation of the purchase price among those assets and liabilities could not be determined.