Pan American Silver has signed a final agreement with Mag Silver to acquire all of its ordinary actions issued and in circulation via an arrangement plan approved by the court for total consideration of around 2.1 billion dollars.
Under the transaction, MAG shareholders will receive $ 500 million in cash in cash from $ 923 million in Pan American and 0.755 Pan -American actions for each Mag action.
The offer represents a bonus of 21 to 27% compared to the average fence price and 20 days weighted according to the volume of MAG shares in May 9, 2025.
After the transaction, Pan American should issue a total of 60 million ordinary shares to MAG shareholders, while Mag shareholders will hold around 14% of the entirely diluted actions in Pan American, acquired an exposure to a more diverse and more diverse and focusing producer focused on growth.
The acquisition will integrate the interest of 44% Mag in the high -quality Juanicipio silver mine in Zacatecas, Mexico, in the Pan American portfolio. Fresnillo holds the remaining participation of 56% in the juntreprise Juanicipio.
The mine should produce between 14.7 million ounces (Moz) and 16.7 moz of silver in 2025.
The transaction will also strengthen Pan American’s position as one of the main producers of money in the world and will stimulate the generation of available cash flow flows, while offering a significant potential for exploration.
Michael Steinmann, president and chief executive officer of Pan American, said: “”Our acquisition of Mag brings to the Pan American portfolio one of the best silver mines in the world. Juanicipio is a large -scale silver mine, of high level and at low cost which will significantly increase the Pan -American exposure to long -margin silver ounces.
“In addition, we see future growth opportunities thanks to the potential for significant exploration in Juanicipio as well as to Mag’s Deer Trail and Properties Larders. This strategic acquisition is more solidified by Pan American as a silver producer focused on the Americas. ”
For MAG shareholders, the agreement offers advantages of disintegration, financial resistance, increased liquidity and an extended presence of the market.
MAG directors and senior executives have agreed to vote in favor of the agreement, who should conclude in the second half of 2025, subject to customary conditions and regulatory approvals.
The president and chief executive officer of Mag, George Paspalas, said: “Thanks to the acquisition of our interest by Pan American – a respected leader in the world’s precious metal industry – our shareholders will participate in an exciting future defined by operational excellence, the potential for substantial exploration and strong financial management with a major portfolio.”
