Provincial posted Sep 5, 2024 @ 08:22am by Canadian Press

First Majestic to buy Gatos Silver in all-stock deal valued at US$970M

First Majestic Silver Corp. has signed a deal to buy Gatos Silver Inc. in a transaction valued at US$970 million.

Under the agreement, Gatos shareholders will receive 2.55 shares of First Majestic for each Gatos share held.

Gatos holds a 70 per cent interest in the Los Gatos joint venture, which owns the Cerro Los Gatos underground silver mine in Chihuahua, Mexico.

<who> Photo credit: First Majestic Silver Corp. </who> One of First Majestic Silver Corp.'s mines in Mexico.

Once the deal is completed, existing Gatos shareholders will own about 38 per cent of the combined company on a fully diluted basis.

The transaction is expected to close in early 2025, subject to the satisfaction of closing conditions, including shareholder and regulatory approvals.

First Majestic owns and operates silver mines in Mexico as well as a portfolio of development and exploration assets, including the Jerritt Canyon Gold project in Nevada.

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