Pan American Silver has entered into a definitive agreement to acquire all of the issued and outstanding common shares of fellow Canadian miner MAG Silver for $2.1 billion.
MAG is a tier-one primary silver mining company through its 44% joint venture interest in the Juanicipio mine in Zacatecas, Mexico, operated by Fresnillo, who holds the remaining 56% interest.
“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,” said Michael Steinmann, president and CEO of Pan American.
“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. We would like to thank the Fresnillo and the Juanicipio management teams for the constructive interactions and impressive site visit. Together, we bring many decades of operator experience in Mexico and Latin America to the Joint Venture and we are looking forward to a collaborative future and value generation for all shareholders involved.”
The acquisition adds 58 million ounces of silver to Pan American’s proven and probable mineral reserves, 19 million oz. of silver to its measured and indicated mineral resources, and 35 million oz. of silver to its inferred mineral resources.
The transaction is expected to close in the second half of 2025.
Source: Pan American Silver