By Colin Kellaher
Pan American Silver has struck a deal to buy smaller mining peer MAG Silver for about $2.1 billion in cash and stock.
Pan American late Sunday said MAG investors can elect to receive $20.54 in cash, 0.755 Pan American shares or a combination of cash and stock for each share held, subject to proration resulting in aggregate consideration consisting of $500 million in cash and the rest in Pan American stock.
The $20.54 cash option represents a 21% premium to Friday's closing price of $16.92 for MAG's U.S.-listed shares.
MAG shares were recently up 7.2% in premarket trading to $18.13, while U.S.-listed shares of Pan American were down 7% to $25.30. Both companies are based in Vancouver, British Columbia.
Pan American said the deal, slated to close in the second half of 2025, bolsters its silver portfolio through the addition of MAG's 44% joint venture interest in the Juanicipio mine in Mexico operated by Fresnillo, which own the remaining 56% of Juanicipio.
Pan American said it expects to issue about 60 million shares in the transaction, with MAG shareholders owning roughly 14% of the combined company.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
May 12, 2025 05:58 ET (09:58 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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