Pan American Silver has signed a definitive agreement with MAG Silver to acquire all its issued and outstanding common shares via a court-approved plan of arrangement for a total consideration of approximately $2.1bn.
Under the transaction, MAG shareholders will receive $500m in cash from Pan American’s $923m cash balance and 0.755 Pan American shares for each MAG share.
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The offer represents a 21–27% premium over the closing and 20-day volume-weighted average price of MAG’s shares as of 9 May 2025.
Post-transaction, Pan American is expected to issue an aggregate of 60 million common shares to MAG shareholders, while MAG shareholders will hold roughly 14% of Pan American’s fully diluted shares, gaining exposure to a more diversified and growth-focused silver and gold producer.
The acquisition will integrate MAG’s 44% interest in the high-grade Juanicipio silver mine in Zacatecas, Mexico, into Pan American’s portfolio. Fresnillo owns the remaining 56% stake in the Juanicipio joint venture.
The mine is expected to produce between 14.7 million ounces (moz) and 16.7moz of silver in 2025.
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By GlobalDataThe transaction will also bolster Pan American’s position as one of the world’s leading silver producers and boost the company’s free cash flow generation, while delivering significant exploration upside potential.
Pan American president and CEO Michael Steinmann said: “Our acquisition of MAG brings into Pan American’s portfolio one of the best silver mines in the world. 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.”
For MAG shareholders, the deal offers de-risking benefits, financial strength, increased liquidity and expanded market presence.
MAG’s directors and executive officers have agreed to vote in favour of the deal, which is expected to close in the second half of 2025, subject to customary conditions and regulatory approvals.
MAG president and CEO George Paspalas said: “Through the acquisition of our interest by Pan American – a respected leader in the global precious metals industry – our shareholders will participate in an exciting future defined by operational excellence, substantial exploration potential and strong financial stewardship with significant portfolio exposure.”
In October 2024, Unico Silver completed the acquisition of the Joaquin Silver District in Argentina from Pan American Silver.
