VANCOUVER – 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.
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.
This report by The Canadian Press was first published Sept. 5, 2024.
Companies in this story: (TSX:AG, TSX:GATO)
