Pan American Silver Corp T.PAAS

Contingency .....

[Odinson]

How many "new" shares will be printed IF the contingency ever comes to pass, by getting Escobal settled favourably?

[Udinese69]

contingent value right (ticker PAASF) exchangeable into 0.0497 PAAS shares upon restart of the Escobal mine – the flagship asset of Tahoe. The restart will be considered effective upon the first commercial shipment of concentrate. The rights expire only in 2029

[Odinson]

Ok, now tell me something that I don't know. Where are all the "extra" shares going to come from? I see dilution and a FURTHER drop in value!

[Udinese69]

20 million oz of silver per year ?

[seriousinvest]

That's approximately the production before the mine was closed. Does anyone have any idea how the negotiations are going and any idea if they can begin to reopen the mine this year?

[Odinson]

Like I have said before ....... this won't be settled before the contingency expires!

[seriousinvest]

There are approximately 314,000,000 outstanding contigent rights. They are exchangeable into approximately 15,600,000 shares. PAAS has approximately 210,000,000 shares outstanding. So fi the shares are issued to the holders of the rights the dilution would be approximately 7.5%. In exchange if the mine were to reopen based on historical production it would produce in excess of 20,000,000 oz of

[gil]

The dilution % is much lower now, since there are more shares due to the merger.