From Yahoo Finance: 2025-05-12 09:15:00

Pan American Silver Corp. (NYSE: PAAS) is set to acquire MAG Silver Corp. through a definitive deal, offering MAG shareholders $2.1 billion in cash and stock, representing premiums to market prices. The acquisition includes a 44% stake in the high-grade Juanicipio silver mine in Mexico, boosting Pan American’s silver production and reserves significantly.

Post-transaction, MAG shareholders will own around 14% of the expanded Pan American, gaining exposure to a larger silver and gold producer. The acquisition is expected to enhance Pan American’s value by adding a stake in the Juanicipio silver mine, which offers substantial exploration potential and high-grade silver production in Mexico.

The acquisition of MAG Silver Corp. by Pan American Silver Corp. is set to significantly increase Pan American’s value and production, with an expected contribution of 6.5-7.3 Moz of silver in 2025. This strategic move will position Pan American as a leading Americas-focused silver producer with a strong portfolio of assets and growth opportunities.

Pan American’s acquisition of MAG Silver is expected to enhance its free cash flow by over $98 million in 2025 and provide significant exploration potential at various properties. With a focus on increasing silver exposure and growth, Pan American aims to solidify its position as a top player in the silver market, leveraging its strong financial position and strategic acquisitions for future success.

Read more: Pan American Acquires MAG For $2.1 Billion