Pan American Silver Expands Portfolio with MAG Acquisition

Pan American Silver (TSX:PAAS,NYSE:PAAS) has successfully completed its acquisition of MAG Silver as per a plan of arrangement.

This transaction significantly enhances Pan American's position in the silver market by adding a 44 percent joint venture interest in the Juanicipio silver mine located in Zacatecas, Mexico. The mine is operated by Fresnillo (LSE:FRES) and is known for its large-scale, high-grade output.

The acquisition also includes 100 percent ownership of the Larder exploration project and a 100 percent earn-in interest in the Deer Trail exploration project.

This move is set to bolster Pan American's industry-leading silver reserve base and contribute to both near-term cash flow growth and long-term exploration potential. Michael Steinmann, President and CEO of Pan American, emphasized the quality and potential of the Juanicipio Mine as a key addition to the company's portfolio.

The transaction involved MAG shareholders receiving an aggregate of US$500 million in cash and about 60.2 million Pan American shares. Post-acquisition, former MAG shareholders now own about 14.3 percent of the fully diluted Pan American shares. The integration of MAG shareholders into Pan American is expected to enhance the company's diversification and growth trajectory.

With the acquisition finalized, MAG shares are anticipated to be delisted from the Toronto Stock Exchange by September 8, and ceased trading on the NYSE American as of September 4.

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