From Yahoo Finance: 2025-05-13 05:30:00

Pan American Silver has agreed to acquire MAG Silver for approximately $2.1 billion, offering $500 million in cash and 0.755 Pan American shares for each MAG share, giving MAG shareholders a 21-27% premium. The deal includes 60 million common shares for MAG shareholders and integrates the Juanicipio silver mine into Pan American’s portfolio, expected to produce 14.7-16.7 million ounces of silver in 2025.

Post-transaction, MAG shareholders will hold around 14% of Pan American’s fully diluted shares, gaining exposure to a more diversified silver and gold producer. Additionally, the acquisition will enhance Pan American’s position as a leading silver producer, increase free cash flow, and offer exploration upside potential.

Pan American’s acquisition of MAG includes the high-grade Juanicipio silver mine, expected to produce up to 16.7 million ounces of silver in 2025. The transaction will strengthen Pan American’s position as a top silver producer, enhance free cash flow generation, and provide significant exploration potential.

MAG shareholders will benefit from the deal with Pan American through de-risking benefits, financial strength, increased liquidity, and expanded market presence. The transaction is expected to close in the second half of 2025, subject to customary conditions and regulatory approvals. MAG’s directors and executive officers have already agreed to vote in favor of the deal.

In October 2024, Unico Silver completed the acquisition of the Joaquin Silver District in Argentina from Pan American Silver. The acquisition of MAG Silver by Pan American Silver is a significant move in the precious metals industry, offering growth opportunities, operational excellence, and financial stewardship for shareholders.



Read more at Yahoo Finance: Pan American Silver to acquire MAG Silver in $2.1bn deal