First Majestic Completes Acquisition of Gatos Silver
First Majestic Silver (AG) has completed its acquisition of Gatos Silver, receiving overwhelming shareholder approval with 98.44% of First Majestic and 99.23% of Gatos Silver votes in favor. Under the merger agreement, Gatos Silver stockholders will receive 2.55 First Majestic common shares for each Gatos Silver share held.
The transaction integrates Cerro Los Gatos, described as a high-quality, long-life operation with positive free cash flow, into First Majestic's portfolio of producing mines in Mexico. The company aims to realize synergies and integration benefits throughout the business. Following the completion, Gatos Silver shares will be delisted from both the NYSE and TSX.
Beneficial stockholders will automatically receive their merger consideration in their accounts, while record holders will receive instructions by mail for surrendering their shares. First Majestic plans to release its 2024 audited financial results and 2025 production and cost guidance on February 20, 2025.
First Majestic Silver (AG) ha completato l'acquisizione di Gatos Silver, ricevendo un'approvazione schiacciante da parte degli azionisti con il 98,44% dei voti di First Majestic e il 99,23% dei voti di Gatos Silver a favore. In base all'accordo di fusione, gli azionisti di Gatos Silver riceveranno 2,55 azioni ordinarie di First Majestic per ogni azione di Gatos Silver detenuta.
La transazione integra Cerro Los Gatos, descritto come un'operazione di alta qualità e lunga durata con un flusso di cassa libero positivo, nel portafoglio di miniere produttive di First Majestic in Messico. L'azienda mira a realizzare sinergie e benefici di integrazione in tutto il business. Dopo il completamento, le azioni di Gatos Silver verranno ritirate sia dalla NYSE che dalla TSX.
Gli azionisti beneficiari riceveranno automaticamente il loro corrispettivo di fusione nei loro conti, mentre i possessori registrati riceveranno istruzioni tramite posta per cedere le loro azioni. First Majestic prevede di pubblicare i risultati finanziari auditati per il 2024 e le indicazioni sulla produzione e sui costi per il 2025 il 20 febbraio 2025.
First Majestic Silver (AG) ha completado su adquisición de Gatos Silver, recibiendo una aprobación abrumadora por parte de los accionistas con un 98,44% de los votos de First Majestic y un 99,23% de los votos de Gatos Silver a favor. Bajo el acuerdo de fusión, los accionistas de Gatos Silver recibirán 2,55 acciones ordinarias de First Majestic por cada acción de Gatos Silver que posean.
La transacción integra Cerro Los Gatos, descrito como una operación de alta calidad y larga duración con un flujo de caja libre positivo, en la cartera de minas productivas de First Majestic en México. La compañía tiene como objetivo realizar sinergias y beneficios de integración a lo largo del negocio. Tras la finalización, las acciones de Gatos Silver serán retiradas de la NYSE y TSX.
Los accionistas beneficiarios recibirán automáticamente su contraprestación de fusión en sus cuentas, mientras que los tenedores registrados recibirán instrucciones por correo para entregar sus acciones. First Majestic planea publicar sus resultados financieros auditados de 2024 y la guía de producción y costos de 2025 el 20 de febrero de 2025.
퍼스트 마제스틱 실버 (AG)가 가토스 실버의 인수 작업을 완료하였으며, 퍼스트 마제스틱 주주 98.44%와 가토스 실버 주주 99.23%가 찬성하여 압도적인 주주 승인 결정을 받았습니다. 합병 계약에 따르면, 가토스 실버의 주주들은 보유하고 있는 가토스 실버 주식 1주당 퍼스트 마제스틱 일반주 2.55주를 받게 됩니다.
이 거래는 고품질의 장기 운영으로 긍정적인 자유 현금 흐름을 가진 세로 로스 가토스를 퍼스트 마제스틱의 멕시코 생산 광산 포트폴리오에 통합합니다. 회사는 비즈니스 전반에 걸쳐 시너지와 통합 혜택을 실현할 계획입니다. 완료 후, 가토스 실버의 주식은 NYSE와 TSX에서 상장 폐지될 예정입니다.
수혜 주주들은 자동으로 계좌에서 합병 금액을 받게 되며, 기록 보유자들은 주식을 양도하기 위한 지침을 우편으로 받을 것입니다. 퍼스트 마제스틱은 2024 회계 연도의 감사 재무 결과와 2025 생산 및 비용 가이드를 2025년 2월 20일에 발표할 계획입니다.
First Majestic Silver (AG) a finalisé son acquisition de Gatos Silver, recevant une approbation écrasante des actionnaires avec 98,44 % des votes de First Majestic et 99,23 % des votes de Gatos Silver en faveur. En vertu de l'accord de fusion, les actionnaires de Gatos Silver recevront 2,55 actions ordinaires de First Majestic pour chaque action de Gatos Silver détenue.
La transaction intègre Cerro Los Gatos, décrit comme une opération de haute qualité et de longue durée avec un flux de trésorerie disponible positif, dans le portefeuille de mines productives de First Majestic au Mexique. L'entreprise vise à réaliser des synergies et des avantages d'intégration dans l'ensemble de ses activités. Après la finalisation, les actions de Gatos Silver seront radiées de la NYSE et de la TSX.
Les actionnaires bénéficiaires recevront automatiquement leur contrepartie de fusion dans leurs comptes, tandis que les détenteurs enregistrés recevront des instructions par courrier pour céder leurs actions. First Majestic prévoit de publier ses résultats financiers audités pour 2024 ainsi que ses prévisions de production et de coûts pour 2025 le 20 février 2025.
First Majestic Silver (AG) hat seine Übernahme von Gatos Silver abgeschlossen und erhielt mit 98,44% der Stimmen von First Majestic und 99,23% der Stimmen von Gatos Silver überwältigende Zustimmung der Aktionäre. Gemäß der Fusionsvereinbarung werden die Aktionäre von Gatos Silver für jede gehaltene Gatos Silver Aktie 2,55 Stammaktien von First Majestic erhalten.
Die Transaktion integriert Cerro Los Gatos, das als hochwertige, langlebige Operation mit positivem freien Cashflow beschrieben wird, in das Portfolio produzierender Minen von First Majestic in Mexiko. Das Unternehmen strebt an, Synergien und Integrationsvorteile im gesamten Geschäft zu realisieren. Nach Abschluss der Transaktion werden die Aktien von Gatos Silver sowohl von der NYSE als auch von der TSX delistet.
Begünstigte Aktionäre erhalten automatisch ihr Fusionsergebnis auf ihren Konten, während die Depotinhaber Anweisungen per Post erhalten, um ihre Aktien zu übertragen. First Majestic plant, am 20. Februar 2025 die geprüften Finanzberichte für 2024 sowie die Produktions- und Kostenschätzungen für 2025 zu veröffentlichen.
- Acquisition adds a high-quality, cash flow positive mine to portfolio
- Strong shareholder approval (>98% from both companies)
- Strategic expansion of Mexican operations
- Integration potential for operational synergies
- Share dilution due to 2.55:1 exchange ratio for Gatos shareholders
Insights
This strategic acquisition solidifies First Majestic's position in the silver mining sector, with the 2.55:1 share exchange ratio representing a calculated move to integrate Gatos Silver's valuable Cerro Los Gatos asset. The overwhelming shareholder approval (98.44% First Majestic, 99.23% Gatos Silver) indicates strong investor confidence in the deal's synergistic potential.
The transaction's structure as an all-stock deal preserves First Majestic's cash position while expanding its asset portfolio. Cerro Los Gatos brings immediate positive free cash flow, which should strengthen First Majestic's financial position and potentially reduce overall operating costs through economies of scale. The partnership with Dowa Metals and Mining adds strategic value through their expertise and financial capabilities in the joint venture.
For retail investors: Think of this like buying a profitable rental property that immediately starts generating income, while also having room for improvements and expansion. The high approval rates suggest both sets of shareholders see significant upside potential in the combined entity.
The acquisition of Cerro Los Gatos represents a significant operational expansion for First Majestic. The mine's characteristics as a high-quality, long-life asset with positive free cash flow align perfectly with the company's portfolio optimization strategy. The 'world-class district' designation isn't just marketing - it implies substantial geological potential and resource expansion opportunities.
The integration timing is optimal, as silver market fundamentals are strengthening due to increasing industrial demand from green technologies and electronic manufacturing. The consolidation creates the leading intermediate primary silver producer, which should provide better market visibility and potentially command a premium valuation multiple.
For the average investor: This is like combining two complementary businesses where 1+1 could equal more than 2. The merged company will have more resources, better operational efficiency and stronger market presence, potentially leading to better performance than either company could achieve independently.
Vancouver, British Columbia--(Newsfile Corp. - January 16, 2025) - First Majestic Silver Corp. (NYSE: AG) (TSX: AG) (FSE: FMV) (the "Company" or "First Majestic") and Gatos Silver, Inc. (NYSE: GATO) (TSX: GATO) ("Gatos Silver") are pleased to announce the completion of the acquisition of Gatos Silver by First Majestic (the "Transaction") pursuant to the agreement and plan of merger (the "Merger Agreement") previously announced in the joint news release of First Majestic and Gatos Silver dated September 5, 2024.
On Tuesday, January 14, 2025, both First Majestic and Gatos Silver announced that they received all necessary shareholder approvals at the respective special meetings of each company's shareholders. Approximately
Under the terms of the Merger Agreement, First Majestic has acquired all of the issued and outstanding shares of common stock of Gatos Silver ("Gatos Silver Shares") and Gatos Silver is now a wholly-owned subsidiary of First Majestic. Stockholders of Gatos Silver will receive 2.55 First Majestic common shares ("First Majestic Shares") for each Gatos Silver Share held, and cash in lieu of fractional First Majestic Shares (collectively, the "Merger Consideration").
"With the closing of this transaction, First Majestic is integrating a high-quality, long-life and positive free cash flow operation into our portfolio of producing mines in Mexico. Cerro Los Gatos is truly a world-class district with robust production and cost profile combined with meaningful exploration potential," said Keith Neumeyer, President & CEO. "Over the coming quarters, we will continue to communicate our plans for Cerro Los Gatos, which will include ways to realize synergies and integration throughout the business. I would like to take this opportunity to personally welcome Gatos Silver stockholders into First Majestic as we create the industry's leading intermediate primary silver producer. Finally, I would like to welcome our joint venture partner Dowa Metals and Mining, whom we look forward to working with closely at Cerro Los Gatos as a supportive and trusted partner."
With the Transaction now complete, the Gatos Silver Shares will cease trading and will be delisted from the New York Stock Exchange and the Toronto Stock Exchange.
Gatos Silver stockholders who hold their Gatos Silver Shares beneficially (for example, in a brokerage account or self-directed trading account), will not be required to take any specific actions to exchange their Gatos Silver Shares for the Merger Consideration. Their Gatos Silver Shares will automatically be exchanged for the Merger Consideration, and such stockholders will receive the Merger Consideration to which they are entitled directly in their account(s) in the coming days.
Record holders of Gatos Silver Shares will be sent by mail a letter of transmittal and instructions for use in effecting the surrender of the Gatos Silver Shares that they hold through one or more share certificates or in book-entry form evidenced through a Direct Registration Account Statement in exchange for the Merger Consideration. On the surrender of such share certificates (or effective affidavits of loss in lieu of a share certificate) or book-entry shares to the exchange agent, together with a duly completed and validly executed letter of transmittal, or, in the case of book-entry shares, receipt of an "agent's message" by the exchange agent, and such other documents as may customarily be required by the exchange agent, the holder of such share certificates (or effective affidavits of loss in lieu of a share certificate) or book-entry shares will be entitled to receive, in exchange, the Merger Consideration in respect of their Gatos Silver Shares. A generic form of letter of transmittal has been filed under the Company's profile on SEDAR+ and is available at www.sedarplus.ca.
2025 PRODUCTION AND COST GUIDANCE
The Company is planning to release its 2024 audited financial results, 2025 production and cost guidance and host a conference call with management on February 20, 2025.
ABOUT THE COMPANY
First Majestic is a publicly traded mining company focused on silver and gold production in Mexico and the United States. The Company presently owns and operates the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine, the La Encantada Silver Mine, and a
First Majestic is proud to offer a portion of its silver production for sale to the public. Bars, ingots, coins and medallions are available for purchase online at www.firstmint.com, at some of the lowest premiums available.
For further information, contact info@firstmajestic.com, visit our website at www.firstmajestic.com or call our toll free number 1.866.529.2807.
FIRST MAJESTIC SILVER CORP.
"signed"
Keith Neumeyer, President & CEO
Cautionary Note Regarding Forward Looking Statements
This news release contains "forward‐looking information" and "forward-looking statements" under applicable Canadian and U.S. securities laws (collectively, "forward‐looking statements"). These statements relate to future events or the Company's future performance, business prospects or opportunities that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management made in light of management's experience and perception of historical trends, current conditions and expected future developments. Forward-looking statements in this news release include, but are not limited to, statements with respect to: receipt of the Merger Consideration by Gatos Silver stockholders; delisting of the Gatos Silver Shares; the Company's plans for the Cerro Los Gatos Silver Mine and communication thereof; and timing for the release of the Company's 2024 audited financial results and production and cost guidance. Assumptions may prove to be incorrect and actual results may differ materially from those anticipated. Consequently, guidance cannot be guaranteed. As such, investors are cautioned not to place undue reliance upon guidance and forward-looking statements as there can be no assurance that the plans, assumptions or expectations upon which they are placed will occur. All statements other than statements of historical fact may be forward‐looking statements. Statements concerning proven and probable mineral reserves and mineral resource estimates may also be deemed to constitute forward‐looking statements to the extent that they involve estimates of the mineralization that will be encountered as and if the property is developed, and in the case of measured and indicated mineral resources or proven and probable mineral reserves, such statements reflect the conclusion based on certain assumptions that the mineral deposit can be economically exploited. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives or future events or performance (often, but not always, using words or phrases such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "forecast", "potential", "target", "intend", "could", "might", "should", "believe" and similar expressions) are not statements of historical fact and may be "forward‐looking statements".
Actual results may vary from forward-looking statements. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results to materially differ from those expressed or implied by such forward-looking statements, including but not limited to: the duration and effects of the coronavirus and COVID-19, and any other pandemics on our operations and workforce, and the effects on global economies and society; general economic conditions including inflation risks; actual results of exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; commodity prices; variations in ore reserves, grade or recovery rates; actual performance of plant, equipment or processes relative to specifications and expectations; accidents; labour relations; relations with local communities; changes in national or local governments; changes in applicable legislation or application thereof; delays in obtaining approvals or financing or in the completion of development or construction activities; exchange rate fluctuations; requirements for additional capital; government regulation; environmental risks; reclamation expenses; outcomes of pending litigation; limitations on insurance coverage as well as those factors discussed in the section entitled "Description of the Business - Risk Factors" in the Company's most recent Annual Information Form for the year ended December 31, 2023 filed with the Canadian securities regulatory authorities under the Company's SEDAR+ profile at www.sedarplus.ca, and in the Company's Annual Report on Form 40-F for the year ended December 31, 2023 filed with the United States Securities and Exchange Commission on EDGAR at www.sec.gov/edgar. Although First Majestic has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
The Company believes that the expectations reflected in these forward‐looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward‐looking statements included herein should not be unduly relied upon. These statements speak only as of the date hereof. The Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/237407
FAQ
What is the exchange ratio in First Majestic's (AG) acquisition of Gatos Silver?
When will First Majestic (AG) release its 2025 guidance after the Gatos acquisition?
What percentage of shareholders approved the First Majestic (AG) and Gatos Silver merger?
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What strategic assets does First Majestic (AG) gain from the Gatos Silver acquisition?
