Pan American Silver has reached an agreement to acquire MAG Silver, a Canada-based tier-one primary silver mining company, for approximately $2.1bn.
This transaction will see Pan American acquire MAG Silver’s 44% stake in the producing Juanicipio silver/gold mine in Mexico. The mine is operated by Fresnillo, which owns the remaining 56% interest.
In addition to its interest in Juanicipio, MAG Silver is involved in exploration projects at the Deer Trail Project in Utah, US and the Larder Project in the Abitibi region of Canada. The company is publicly traded on the NYSE American (NYSEAM) and the Toronto Stock Exchange (TSX).
Under the acquisition terms, MAG Silver’s shareholders will receive compensation of roughly $20.54 per share, comprised of $500m in cash and 0.755 Pan American shares per MAG Silver’s share.
This signifies a premium of approximately 21% and 27% over the closing price and the 20-day volume-weighted average price of MAG Silver’s shares on NYSEAM as of 9 May 2025.
Post-transaction, existing MAG Silver’s shareholders will own about 14% of Pan American on a fully diluted basis.
The deal’s benefits to MAG Silver’s shareholders include immediate financial uplift, exposure to a diversified portfolio of ten silver and gold mines across seven countries, and continued interest in Juanicipio’s operational performance.
The transaction also mitigates risk by transitioning from a concentrated interest in Juanicipio to ownership in a diversified larger silver producer with substantial long-term potential.
MAG Silver president and CEO George Paspalas said: “This transaction represents a compelling opportunity for our shareholders, providing an immediate premium and meaningful exposure to Pan American’s world-class assets and proven growth strategy.
“We are proud of what we’ve accomplished at MAG, particularly our partnership with Fresnillo which has created extraordinary value at the exceptional Juanicipio mine.”
For Pan American’s shareholders, this acquisition adds a significant interest in one of the world’s major silver mines, Juanicipio, projected to produce between 14.7 million and 16.7 million ounces of silver by 2025.
The acquisition further strengthens Pan American’s position as a premier silver producer by increasing its reserves and resources considerably.
Pan American president and CEO Michael Steinmann said: “Juanicipio is a large-scale, high-grade, low-cost silver mine that will meaningfully increase Pan American’s exposure to high margin silver ounces.
“Furthermore, we see future growth opportunities through the significant exploration potential at Juanicipio as well as MAG’s Deer Trail and Larder properties. This strategic acquisition further solidifies Pan American as a leading Americas-focused silver producer.”
The transaction is anticipated to conclude in the latter half of 2025, following customary closing conditions such as Mexican anti-trust approvals and listing approvals for Pan American shares on both the Toronto Stock Exchange and NYSE.
