Mexico-focused company First Majestic Silver has signed a definitive arrangement agreement to acquire all of the issued and outstanding common shares of Primero Mining for $320m.

Under the agreement, every Primero shareholder will receive 0.03325 First Majestic common shares in exchange for one Primero common unit.

Primero owns the San Dimas silver-gold mine in the Mexican state of Durango.

Primero has identified more than 120 epithermal veins with exploration potentiality throughout its production history.

In parallel with the deal, First Majestic has entered separate agreements with Wheaton Precious Metals International (WPM) to terminate the existing silver streaming interest at the San Dimas mine.

The two parties will enter a fresh stream arrangement based on 25% of the gold equivalent production at the mine.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
“The new stream and related amendments with WPM repositions the asset by maximising silver exposure for our shareholders, while significantly increasing the free cash-flow from San Dimas.”

Under this transaction, WPM will receive First Majestic 20,914,590 common shares with an aggregate value of $151m.

First Majestic Silver CEO Keith Neumeyer said: “The acquisition of Primero is a highly compelling transformative transaction that further enhances First Majestic’s operating platform, adding a very high-quality, long-lived asset in San Dimas, all in First Majestic’s backyard in Durango, Mexico.

“Most importantly, the new stream and related amendments with WPM repositions the asset by maximising silver exposure for our shareholders, while significantly increasing the free cash-flow from San Dimas.”

After the completion of the acquisition, which is subject to customary closing and regulatory conditions, First Majestic is estimated to have a pro-forma annualised attributable silver equivalent production of 27 million to 30 million equivalent ounces.

Currently, the company operates six silver mines in Mexico.