VANCOUVER – Canada’s
Pan American Silver announced Feb. 22 that it has completed the $1.07-billion buyout of
Tahoe Resources by acquiring all of the issued and outstanding shares of the precious metals miner.
Pan American expects to produce between 26.5 million and 27.5 million oz. of silver this year, with gold output in the range of 162,500 to 172,500 oz.
Based on the deal signed by both companies, some Tahoe shareholders received 0.2403 of a Pan American share for each Tahoe share, subject to pro-rated basis on a maximum cash consideration of $275 million and a maximum number of Pan American shares issued of 56 million. Tahoe shareholders who did not want to join Pan American received $3.40 in cash for each share instead.
Overall, holders of 23.6 million Tahoe shares decided to take the cash, while holders of 290.2 million Tahoe shares made, or were deemed to have made, the share election by the deadline of 4:30 pm EST on Jan. 3, 2019.
By finalizing this transaction, Pan American, already the world’s second largest primary silver miner, is doubling its silver reserves, as Tahoe owns the controversial Escobal mine in Guatemala, which is the third largest silver mine in the world, as well as gold mines in Peru and Canada.
“The completion of the arrangement establishes the world's premier silver mining company with an industry leading portfolio of assets, a robust growth profile and attractive operating margins. We are also now the largest publicly traded silver mining company by free float, offering silver mining investors enhanced scale and liquidity,” Michael Steinmann, president and CEO of Pan American Silver, said in a media statement.
This story first appeared on www.Mining.com.
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