- Pan American Silver (TSX: PAAS) and will acquire all issued and outstanding common shares of MAG Silver (TSX:MAG) valued at approximately US$2.1 billion
- MAG shareholders will receive US$20.54 per share, based on the closing price of Pan American’s common shares on the New York Stock Exchange
- All directors and executive officers of MAG have entered into voting support agreements with Pan American, agreeing to vote their shares in favour of the transaction
- Pan American Silver stock (TSX: PAAS) last traded at C$37.90 and MAG Silver (TSX:MAG) last traded at C$23.58
Pan American Silver (TSX: PAAS) and MAG Silver (TSX:MAG) have announced a definitive agreement under which Pan American will acquire all issued and outstanding common shares of MAG. This transaction, valued at approximately US$2.1 billion.
MAG Silver Corp., a tier-one primary silver mining company, holds a 44 per cent joint venture interest in the large-scale, high-grade Juanicipio mine, operated by Fresnillo plc, which owns the remaining 56 per cent interest. The acquisition will significantly enhance Pan American’s portfolio, adding one of the best silver mines globally.
Under the terms of the agreement, MAG shareholders will receive US$20.54 per share, based on the closing price of Pan American’s common shares on the New York Stock Exchange as of May 9, 2025. The consideration includes US$500 million in cash and 0.755 Pan American shares per MAG share, subject to proration. This represents premiums of approximately 21 per cent and 27 per cent to the closing price and the 20-day volume weighted average price of MAG’s common shares on the NYSE American ending May 9, 2025.
MAG shareholders will have the option to elect to receive the consideration in cash, Pan American shares, or a combination of both, subject to proration. Following the transaction, existing MAG shareholders will own approximately 14 per cent of Pan American shares on a fully diluted basis, benefiting from participation in a larger, diversified, and growth-oriented silver and gold producer.
The transaction is expected to close in the second half of 2025, pending customary closing conditions, including clearance under Mexican anti-trust laws and approval of the listing of Pan American common shares on the Toronto Stock Exchange and the NYSE. A special meeting of MAG shareholders to approve the transaction is anticipated in July 2025, requiring a 66 2/3 per cent majority vote.
All directors and executive officers of MAG have entered into voting support agreements with Pan American, agreeing to vote their shares in favour of the transaction. Full details will be provided in the management information circular to be mailed to MAG shareholders in June 2025.
“Our acquisition of MAG brings into Pan American’s portfolio one of the best silver mines in the world. Juanicipio is a large-scale, high-grade, low-cost silver mine that will meaningfully increase Pan American’s exposure to high margin silver ounces. Furthermore, we see future growth opportunities through the significant exploration potential at Juanicipio as well as MAG’s Deer Trail and Larder properties,” Michael Steinmann, president and CEO of Pan American, commented in a news release. “This strategic acquisition further solidifies Pan American as a leading Americas-focused silver producer. We would like to thank the Fresnillo and the Juanicipio management teams for the constructive interactions and impressive site visit. Together, we bring many decades of operator experience in Mexico and Latin America to the Joint Venture and we are looking forward to a collaborative future and value generation for all shareholders involved.”
“This transaction represents a compelling opportunity for our shareholders, providing an immediate premium and meaningful exposure to Pan American’s world-class assets and proven growth strategy,” George Paspalas, president and CEO of MAG, added, “We are proud of what we’ve accomplished at MAG, particularly our partnership with Fresnillo which has created extraordinary value at the exceptional Juanicipio mine. Through the acquisition of our interest by Pan American – a respected leader in the global precious metals industry – our shareholders will participate in an exciting future defined by operational excellence, substantial exploration potential, and strong financial stewardship with significant portfolio exposure.”
Pan American Silver has been producing and exploring for precious metals in the Americas for nearly three decades. It operates silver and gold mines in Canada, Mexico, Peru, Bolivia, Argentina, Chile, and Brazil, and maintains interests in numerous exploration and development projects.
MAG Silver is a Canadian silver development and exploration company focused on the Americas. Its flagship 4,000 tonnes per day Juanicipio Project, operated by Fresnillo Plc (56 per cent owned), is undergoing an expanded exploration program targeting multiple highly prospective targets.
Pan American Silver stock (TSX: PAAS) last traded at C$37.90.
MAG Silver (TSX:MAG) last traded at C$23.58.
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