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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.

"This acquisition meaningfully enhances First Majestic's operating platform through the addition of 70% of Cerro Los Gatos—a high-quality, long-life, free cash flow generating asset in the mining-friendly state of Chihuahua," First Majestic President and CEO Keith Neumeyer said.

Shareholder Benefits

For First Majestic shareholders, the acquisition adds a third cornerstone mine to its portfolio, while Gatos shareholders will benefit from production diversification and exposure to complementary assets. The deal will also provide Gatos shareholders with enhanced liquidity and capital market opportunities within First Majestic’s established platform.

Dale Andres, CEO of Gatos, said, “This transaction offers our shareholders an attractive premium and exposure to a long-life asset within a well-established silver producer.”

First Majestic $970M Gatos Buy : Closing Timeline

The First Majestic $970M Gatos buy is expected to close in early 2025, pending shareholder approvals and regulatory clearance under Mexican antitrust laws. Once finalized, Gatos shareholders are anticipated to hold approximately 38% of the merged entity.

Legal Teams Behind the Deal

The Bennett Jones team guiding First Majestic in the acquisition includes mergers and acquisitions partners James Beeby, Lisa Stewart, and Jeff Taylor, as well as tax and financial services experts. The White & Case team representing Gatos was led by Gregory Pryor and Kristen Rohr, along with partners from the firm’s mining and tax practices.