Canadian miner Pan American Silver Corp. (PAAS) entered a merger agreement on May 11, 2025, to acquire MAG Silver Corp. (MAG) in a deal valued at $2.1 billion.
Under the terms of the agreement, MAG shareholders will be able to elect to receive the consideration as either $20.54 in cash per MAG share or 0.755 common shares of Pan American per MAG share, or a combination of cash and shares, subject to proration such that the aggregate consideration paid to all MAG shareholders consists of $500 million in cash and the remaining consideration paid in Pan American Shares.
The cash consideration of $20.54 represents a 21.39% premium from the stock’s last close.
At closing, Pan American expects to issue an aggregate of about 60 million common shares to MAG shareholders.
MAG Silver is a Canadian mining company focused on the exploration and development of high-grade silver and gold projects in the Americas, including a 44% interest in the Juanicipio Mine in Mexico and exploration projects in the U.S. and Canada.
Pan American is a leading Canadian mining company engaged in the exploration, development, and operation of silver and gold mines across the Americas, with a portfolio spanning Canada, Mexico, Peru, Argentina, and other countries.
The deal will grant Pan American Silver a 44% stake in the tier-one Juanicipio silver mine in Mexico, currently held by MAG. The mine is operated by Fresnillo, which owns the remaining 56%.
The deal is expected to close in the second half of 2025.
As part of the transaction, an elective tax rollover will be available to taxable MAG shareholders residing in Canada who receive Pan American shares, allowing them to potentially defer some or all of the capital gains taxes that would otherwise arise from the exchange of their MAG shares.
The deal will not be subject to review or approval under the Investment Canada Act, and it will not require approval from Pan American shareholders. The deal will require approval from at least 66⅔% of the votes cast by MAG shareholders at a special meeting anticipated for July 2025. The deal also requires clearance under Mexican antitrust laws.
National Bank Financial served as the exclusive financial advisor to Pan American, while Borden Ladner Gervais acted as its Canadian legal counsel. BMO Capital Markets and GenCap Mining Advisory acted as co-financial advisors to MAG. Blake, Cassels & Graydon served as MAG’s Canadian legal counsel, and Paul, Weiss, Rifkind, Wharton & Garrison acted as its U.S. legal counsel. Raymond James provided an independent fairness opinion to both the MAG Special Committee and the Board of Directors.
For more detailed information regarding this significant merger and acquisition transaction, please visit the Deal Metrics page here:
Deal Metrics for the acquisition of MAG Silver Corp. (MAG) by Pan American Silver Corp. (PAAS)
The Deal Metrics page for each merger or acquisition includes:
– A spread history chart of the merger from announcement through eventual completion or failure.
– Every event as the merger progresses through the expiration of the HSR period, various regulatory approvals, shareholder votes, etc.
– News and SEC filings.
– A history of deal updates.
– And much more.
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Editor’s Note: Baranjot Kaur contributed to this article