RTTNews | Jul 13, 2021 11:09AM EDT

11:05 Tuesday, July 13, 2021 (RTTNews.com) - Colorado-based mining company Gatos Silver, Inc. (GATO) is dropping 20% in morning trade. Tuesday, the company announced the termination of its Los Gatos Joint Venture term loan as well as the issue of common shares.

The company said it achieved a definitive agreement with Dowa Metals & Mining Co., Ltd. to close its share of $154.8 million in the venture. CEO of the company, Stephen Orr, said, "The successful completion of this definitive agreement is a significant value-catalyst and deleveraging event for the LGJV. This agreement also reaffirms our commitment to creating value for our Gatos Silver stakeholders while continuing to position Gatos Silver as the prominent "go-to" company for silver exposure."

Separately, Gatos Silver announced the offering of 6,500,000 common shares and 1,820,000 shares of certain selling stockholders. The date of the offering is yet to be announced.

The company is currently trading at $15.21, down $4.16 or 21.49% from its previous close at $19.37 on Monday. The shares opened at $17.66 in the morning and in the 52-week period, the shares have ranged between $5.78 and $24.00.

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