in addition to buying a gold project in mexico, fresnillo may repurchase up to 10% of its stock.

MEXICO CITY, Dec 15 (Reuters) - Fresnillo Plc, the world's largest primary silver producer, said on Monday that its Mexican joint venture with US gold miner Newmont Mining Corp had acquired the Noche Buena gold project in Mexico from Canada's Seabridge Gold Inc.

Fresnillo (FRES.L: Quote, Profile, Research, Stock Buzz), controlled by Mexican miner Penoles (PENOLES.MX: Quote, Profile, Research, Stock Buzz), said the joint venture agreed to pay $25 million in cash to Seabridge (SEA.TO: Quote, Profile, Research, Stock Buzz) for the Noche Buena project.

A further $5 million is payable to Seabridge when commercial production begins and Seabridge will earn a net smelter royalty of 1.5 percent on all production from the mine sold for $800 an ounce or greater.

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