What asset did Deterra Royalties sell?

Deterra Royalties (ASX:DRR) sold its La Preciosa silver royalty in Mexico.

Who acquired the La Preciosa project?

Avino Silver & Gold Mines (TSX:ASM) acquired the project from Deterra Royalties.

Which company received deferred consideration?

Coeur Mining (NYSE:CDE) is set to receive deferred payment as part of the arrangements.

Deterra Royalties exits La Preciosa with Avino deal ASX 200

3 min read | August 26, 2025 03:56 PM AEST | By Team Kalkine Media

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Deterra Royalties exits La Preciosa with Avino deal ASX 200 — Image source: Shutterstock

Structure of the agreement

The deal provides Avino Silver & Gold Mines (TSX:ASM) with full control of the project. Under the terms, Deterra Royalties (ASX:DRR) will no longer maintain any royalty interests connected to La Preciosa, and contingent milestone obligations associated with the project will be removed as part of the transaction.

Connection with Coeur Mining

As part of the broader arrangements, Deterra Royalties (ASX:DRR) will deliver a deferred consideration to Coeur Mining (NYSE:CDE). This payment is structured to settle earlier contractual conditions tied to the project and ensures a clean exit from the royalty arrangement in Mexico.

Portfolio strategy and focus

The silver royalty was originally acquired through a portfolio purchase from Trident Royalties. That transaction granted Deterra Royalties (ASX:DRR) a mix of net smelter return and gross value return royalties over La Preciosa. However, management has consistently communicated that its long-term focus lies within base, bulk, and battery-related commodities rather than precious metals.

Capital management and returns

By divesting from La Preciosa, Deterra Royalties (ASX:DRR) reports that the outcome reflects disciplined capital management. The transaction is expected to deliver a healthy financial outcome compared to the original acquisition cost, reinforcing the company’s business model of aligning with established project operators.

Avino’s role in La Preciosa

Avino Silver & Gold Mines (TSX:ASM) continues to advance the development of La Preciosa, one of its key silver projects in Mexico. The strengthened ownership position enables Avino to fully consolidate project operations without external royalty encumbrances, supporting its broader production framework.

Global silver market environment

The broader silver market has remained active, with Mexico serving as the leading producer worldwide. Silver output continues to expand, supported by strong industrial and precious metal demand. The prevailing commodity environment has provided favourable conditions for companies positioned within the sector, including Avino Silver & Gold Mines (TSX:ASM) and Coeur Mining (NYSE:CDE).

Implications for the Australian market

With this divestment, Deterra Royalties (ASX:DRR) strengthens its alignment with its strategic focus on base, bulk, and electrification-linked commodities. The company remains positioned within the ASX 200, reflecting its standing on the Australian Securities Exchange and continued role in the Australian resources sector.

Frequently Asked Questions

What asset did Deterra Royalties sell?
Deterra Royalties (ASX:DRR) sold its La Preciosa silver royalty in Mexico.
Who acquired the La Preciosa project?
Avino Silver & Gold Mines (TSX:ASM) acquired the project from Deterra Royalties.
Which company received deferred consideration?
Coeur Mining (NYSE:CDE) is set to receive deferred payment as part of the arrangements.

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