Pan American Silver To Acquire MAG Silver In US$2.1 Bln Deal

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(RTTNews) - Pan American Silver Corp. (PAAS, PAAS.TO) has agreed to acquire MAG Silver Corp. (MAG, MAG.TO) in a transaction valued at US$2.1 billion.

As per the terms of the deal, MAG shareholders will receive total consideration of approximately US$2.1 billion representing US$20.54 per MAG share, based on the closing price of Pan American's common shares on the New York Stock Exchange on May 9, 2025. Consideration will be comprised of a mix of cash totaling US$500 million and 0.755 Pan American shares per MAG share, subject to proration. The consideration represents premiums of approximately 21% and 27%, respectively, on a prorated basis 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. Following completion of the Transaction, existing MAG shareholders will own approximately 14% of Pan American shares on a fully diluted basis.

MAG Silver is a tier-one primary silver mining company through its 44% joint venture interest in the large-scale, high-grade Juanicipio mine, operated by Fresnillo plc, who holds the remaining 56% interest in the Juanicipio joint venture.

As per the terms of the deal, MAG shareholders will be able to elect to receive the consideration as either $20.54 in cash per MAG share or 0.755 common shares of Pan American per MAG share, or a combination of cash and shares, subject to proration such that the aggregate consideration paid to all MAG shareholders consists of $500 million in cash and the remaining consideration paid in Pan American Shares.

At closing, Pan American expects to issue an aggregate of approximately 60 million common shares to MAG shareholders, and following completion of the Transaction, existing MAG shareholders will own approximately 14% of the issued and outstanding common shares of Pan American on a fully diluted basis.

The transaction is expected to close in the second half of 2025.