Pan American Silver closes MAG Silver acquisition
NYSE-listed Pan American Silver said on Thursday it had completed its acquisition of MAG Silver, adding a 44% stake in the Juanicipio silver mine in Mexico to its portfolio along with two exploration projects in North America.
Under the transaction, MAG shareholders received $500-million in cash and about 60.2-million Pan American shares. Following completion, they hold roughly 14.3% of Pan American’s outstanding shares on a fully diluted basis.
“The Juanicipio mine is a high-quality addition to our portfolio that will contribute meaningfully to our silver production, reserves and cash flow,” CEO Michael Steinmann said in a statement.
“We are pleased to welcome MAG shareholders to Pan American who now benefit from participation in a larger, diversified, and growth-oriented silver and gold producer. We also look forward to working collaboratively with Fresnillo, the mine's operator, to advance the potential of the Juanicipio asset for the benefit of all stakeholders.”
The deal gives Pan American 100% ownership of the Larder exploration project in Canada and a full earn-in interest in the Deer Trail project in Utah.
MAG’s shares will be delisted from the TSX after markets close on September 8 and ceased trading on the NYSE American on September 4.
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