Silver and gold mining company First Majestic Silver Corp. has agreed to acquire Mexican silver exploration and production company Gatos Silver Inc. in a $970 million deal, the companies announced Thursday. The transaction, facilitated by four law firms, aims to consolidate silver mining assets in Mexico.
Under the deal, Gatos shareholders will receive 2.55 shares of First Majestic common stock for each Gatos share they own. This values Gatos shares at $13.49 each, based on First Majestic’s closing price on Wednesday, according to the announcement.
First Majestic $970M Gatos Buy : Legal Teams Steer the Deal
The legal teams involved in the First Majestic $970M Gatos buy include Bennett Jones LLP and Dorsey & Whitney LLP advising First Majestic, while Gatos was represented by White & Case LLP and McCarthy Tetrault LLP.
First Majestic is a publicly traded company focused on silver and gold mining in Mexico and the U.S., operating several mines such as the San Dimas Silver/Gold Mine and the Santa Elena Silver/Gold Mine. Meanwhile, Gatos Silver holds a 70% stake in the Los Gatos Joint Venture, which operates the Cerro Los Gatos underground silver mine in Chihuahua, Mexico.
First Majestic $970M Gatos Buy : Strengthening Production
The First Majestic $970M Gatos buy is poised to boost production across the combined company’s assets, unifying three major silver mining districts in Mexico. The companies expect their combined annual output to reach 30-32 million ounces of silver-equivalent.
