Gatos Silver amends agreements with Dowa for Los Gatos Joint Venture, strengthening relationship

From GlobeNewswire: 2024-12-19 21:52:24

Gatos Silver, Inc. announced amended agreements with Dowa Metals & Mining Co., Ltd. regarding the Los Gatos Joint Venture. The changes will allow Gatos Silver to fully consolidate the financial statements of the LGJV effective January 1, 2025. The ownership interests remain 70% for Gatos Silver and 30% for Dowa. The agreements also strengthen Dowa’s zinc concentrate offtake rights and update terms for management services provided by Gatos Silver. The amendments come ahead of the anticipated merger with First Majestic in January 2025.

As part of the transaction with First Majestic, Gatos Silver has filed a Proxy Statement/Prospectus with the SEC regarding the proposed acquisition. The registration statement on Form F-4 was declared effective on December 2, 2024. Shareholders are urged to carefully review the Proxy Statement/Prospectus and other relevant documents before making any voting or investment decisions related to the Transaction. Participants in the merger solicitation include directors, executive officers, and employees from both companies.

Gatos Silver is primarily focused on operating the Cerro Los Gatos mine and developing the Los Gatos district. The company, with a 70% ownership in the LGJV, is exploring a silver and zinc-rich mineral district in Mexico. The proposed merger with First Majestic aims to create a leading intermediate primary silver producer. Gatos Silver advises caution regarding forward-looking statements and emphasizes the importance of considering potential risks and uncertainties.



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