VANCOUVER, Dec. 27, 2016 /CNW/ - Pan American Silver Corp.
(NASDAQ: PAAS) (TSX: PAA) ("Pan American" or the "Company") has acquired ownership and control of an additional 10,000,000 common
shares of Maverix Metals Inc. (TSXV: MMX) ("Maverix") through the exercise of 10,000,000 previously acquired common share purchase
warrants with an exercise price of US$0.546 per common share (the "Common Shares") on December 23, 2016, for gross proceeds to Maverix of US$5,460,000 (the "Warrant
Exercise"). Pan American has also acquired ownership and control of an additional 6,500,000 Maverix common share purchase warrants
with an exercise price of US$1.204 per common share of Maverix, such warrants expiring on
July 8, 2021 ("Replacement Warrants"). The Warrant Exercise and the issuance of the Replacement
Warrants were carried out as part of an early warrant exercise incentive arrangement with Pan American in connection with a
transaction between Maverix and Gold Fields Netherlands Services BV and certain of its affiliates, which closed on December 23, 2016. The Company continues to hold 10,000,000 previously acquired common share purchase
warrants exercisable for US$0.78 per common share expiring in July 2021
("Existing Warrants").
Immediately following the Warrant Exercise and issuance of the Replacement Warrants, Pan American directly owned 52,850,000
Common Shares and 16,500,000 Existing Warrants and Replacement Warrants, representing approximately forty (40%) of the total number
of the issued and outstanding common shares of Maverix on a non-diluted basis, and approximately forty-three percent (43%) of the
issued and outstanding shares on a fully-diluted basis.
Pan American had previously entered into a shareholder agreement (the "Shareholder Agreement") with Maverix, pursuant to which
Pan American is entitled to: (i) appoint up to two nominees for election to the Board of Directors of Maverix, depending on
Pan American's shareholdings of Maverix; (ii) certain pre-emptive rights in respect of equity financings of Maverix, including
certain anti-dilution rights; and (iii) certain qualification rights in respect of Pan American's shareholding. Under the
Shareholder Agreement, Pan American's shareholdings in Maverix are subject to certain restrictions, including a two year hold
period until July 8, 2018, and following that, certain rights of orderly disposition of its
shareholdings. The Company further agreed to provide Maverix with an opportunity to make an offer to acquire any metal stream
or metal royalty transactions which Pan American contemplates granting on certain of its properties.
The Company's acquisition was made for investment purposes. The Company may, in the future, acquire ownership and control over
additional securities of Maverix for investment purposes.
About Pan American Silver
Pan American Silver Corp. is one of the largest primary silver producers in the world. We own and operate seven mines in
Mexico, Peru, Argentina and
Bolivia. Pan American also owns several development projects in the USA, Mexico, Peru and Argentina. Our mission is
to be the world's pre-eminent silver producer, with a reputation for excellence in discovery, engineering, innovation and
sustainable development. The Company is headquartered in Vancouver, B.C. and our shares
trade on NASDAQ (PAAS) and the Toronto Stock Exchange (PAA).
For more information, visit: www.panamericansilver.com
SOURCE Pan American Silver Corp.
