Pan American Silver Corp. has announced a definitive agreement to acquire rival MAG Silver Corp. in a transaction valued at approximately $2.1 billion, marking one of the largest consolidations in the global silver mining sector this year. The deal, structured as a mix of cash and stock, will see Pan American expand its portfolio with a strategic stake in the high-grade Juanicipio mine in Mexico.
Under the terms of the agreement, MAG shareholders will receive $500 million in cash and 0.755 shares of Pan American for each MAG share they own, translating to a total value of $20.54 per MAG share based on recent closing prices. This represents a premium of 21% to 27% over MAG’s closing price and 20-day volume-weighted average price as of May 9, 2025. Upon completion, MAG shareholders will hold approximately 14% of Pan American’s fully diluted shares, gaining exposure to a larger, more diversified silver and gold producer.
The acquisition is expected to close in the second half of 2025, pending regulatory approvals and customary closing conditions. MAG’s board of directors and executive officers have already agreed to support the transaction.
The centerpiece of the deal is MAG’s 44% interest in the Juanicipio mine, a large-scale, high-grade, and low-cost silver operation managed by Fresnillo, which retains the remaining 56% stake. Juanicipio has rapidly become a cornerstone asset, generating $77.4 million in free cash flow in the first quarter of 2025-almost triple the previous year’s figure. The mine is projected to yield 16.7 million ounces of silver in 2025, substantially boosting Pan American’s production profile and cash flow.
Pan American’s President and CEO, Michael Steinmann, described the acquisition as a strategic move that “solidifies Pan American as a leading Americas-focused silver producer.” He highlighted the significant exploration potential at Juanicipio and other MAG properties, including Deer Trail and Larder, as future growth drivers.
For MAG shareholders, the deal offers immediate value, enhanced liquidity, and the opportunity to participate in the growth of a top-tier silver producer with a robust balance sheet and diverse asset base.
This acquisition continues a wave of consolidation in the silver mining industry, reflecting the sector’s drive for scale, operational efficiency, and increased shareholder value. As global demand for silver remains strong, the combined entity is poised to capitalize on new opportunities across the Americas.
