The Silvertip Mine southwest of Watson Lake has been sold to Coeur Mining of Chicago for $200-million-plus.

The transaction, announced this week, is scheduled to officially close toward the end of October. It’s expected the high-grade silver mine will recommence production next spring.

Production at the mine stopped last April after excessive exposure to lead dust in the mill prompted two stop-work orders from the chief of mines for B.C.

One order has been lifted and the second is under review to determine if steps taken by JDS Silver are in compliance with the order.

“Upon expected completion of the transaction in late October, Coeur intends to invest US$25 – US$35 million in surface infrastructure, accelerated underground development and drilling and mill optimization over a six-month period and recommence commercial production by the end of the first quarter of 2018,” says the company’s press release announcing the sale. The Silvertip deposit was discovered in 1957.

The discovery eventually led to the construction of a 26-kilometre road into the property, running south through the Yukon into B.C. from the Alaska Highway near Rancheria.

The mine is located 16 kilometres south of the border.

There was been extensive exploration on the property over the years, along with the development of 2.7 kilometres of underground workings.

JDS Silver, a private company, purchased the mine in 2013, along with a key piece of equipment from the former Sa Dena Hes Mine near Watson Lake.

Construction of the new operation began in December 2015 and the mine began production last October.

Denham Capital, a private equity firm out of Houston, Tex., purchased 65 per cent of the Silvertip mine last fall for $65 million.

Denham director Caroline Donally told the Star Thursday she is pleased to see a company the size of Coeur Mining purchase the mine with plans to expand its size and production.

Coeur announced it is purchasing the asset for $200 million, with additional payments of up to $50 million “contingent upon achieving specific future permitting and exploration milestones at Silvertip.”

Once the company achieves its production target of 1,000 tonnes per day, it expects to produce three million ounces of silver annually along with 45 to 50 million pounds of zinc and 45 to 50 million pounds of lead, says Coeur’s press release.

The mine life is currently estimated at 7.5 years.

In an emailed statement to the Star, JDS Silver president Brian Gilchrist said he and CEO Jeff Stibbard are also pleased to have Coeur purchase the mine.

“We believe Coeur has purchased a world-class asset in a great jurisdiction, and Silvertip will be an excellent addition to the company,” said Gilchrist.

“... Jeff and I are very proud of our entire team at JDS on the development of Silvertip and now the sale.”