Gatos Silver Reports Stockholder Approval of Merger with First Majestic
Gatos Silver (NYSE:GATO) announced that stockholders have approved the merger agreement with First Majestic Silver Corp. Approximately 71.3% of outstanding Gatos Silver shares voted in favor of the Merger Resolution at the special stockholders meeting. First Majestic shareholders also approved the issuance of up to 190,000,000 common shares for the merger.
Under the merger terms, Gatos Silver stockholders will receive 2.55 First Majestic shares for each Gatos Silver share held, with fractional shares paid in cash. The transaction is expected to close before market open on January 16, 2025, subject to remaining customary closing conditions.
Gatos Silver (NYSE:GATO) ha annunciato che gli azionisti hanno approvato l'accordo di fusione con First Majestic Silver Corp. Circa il 71,3% delle azioni di Gatos Silver in circolazione ha votato a favore della Risoluzione di Fusione durante l'assemblea straordinaria degli azionisti. Gli azionisti di First Majestic hanno anche approvato l'emissione di fino a 190.000.000 azioni ordinarie per la fusione.
Secondo i termini della fusione, gli azionisti di Gatos Silver riceveranno 2,55 azioni di First Majestic per ogni azione di Gatos Silver detenuta, con frazioni di azioni pagate in contanti. La transazione dovrebbe essere completata prima dell'apertura del mercato il 16 gennaio 2025, soggetta al soddisfacimento delle condizioni di chiusura usuali.
Gatos Silver (NYSE:GATO) anunció que los accionistas han aprobado el acuerdo de fusión con First Majestic Silver Corp. Aproximadamente el 71,3% de las acciones en circulación de Gatos Silver votaron a favor de la Resolución de Fusión en la reunión especial de accionistas. Los accionistas de First Majestic también aprobaron la emisión de hasta 190,000,000 de acciones comunes para la fusión.
Según los términos de la fusión, los accionistas de Gatos Silver recibirán 2.55 acciones de First Majestic por cada acción de Gatos Silver que posean, y las fracciones de acciones se pagarán en efectivo. Se espera que la transacción se cierre antes de la apertura del mercado el 16 de enero de 2025, sujeta a las condiciones de cierre habituales que quedan por cumplir.
Gatos Silver (NYSE:GATO)는 주주들이 First Majestic Silver Corp와의 합병 계약을 승인했다고 발표했습니다. Gatos Silver의 발행 주식 약 71.3%가 특별 주주 총회에서 합병 결의안에 찬성 투표를 했습니다. First Majestic 주주들도 합병을 위해 최대 190,000,000개의 보통주 발행을 승인했습니다.
합병 조건에 따라 Gatos Silver 주주들은 보유한 Gatos Silver 주식 1주당 2.55개의 First Majestic 주식을 받을 것이며, 주식의 분수는 현금으로 지급됩니다. 이번 거래는 2025년 1월 16일 시장 개장 전에 마감될 것으로 예상되며, 나머지 관례적인 마감 조건을 충족해야 합니다.
Gatos Silver (NYSE:GATO) a annoncé que les actionnaires ont approuvé l'accord de fusion avec First Majestic Silver Corp. Environ 71,3 % des actions en circulation de Gatos Silver ont voté en faveur de la Résolution de Fusion lors de l'assemblée extraordinaire des actionnaires. Les actionnaires de First Majestic ont également approuvé l'émission d'un maximum de 190 000 000 d'actions ordinaires pour la fusion.
Selon les termes de la fusion, les actionnaires de Gatos Silver recevront 2,55 actions de First Majestic pour chaque action de Gatos Silver détenue, les actions fractionnaires étant réglées en espèces. La transaction devrait être conclue avant l'ouverture des marchés le 16 janvier 2025, sous réserve des conditions de clôture habituelles restantes.
Gatos Silver (NYSE:GATO) gab bekannt, dass die Aktionäre dem Fusionsvertrag mit First Majestic Silver Corp zugestimmt haben. Etwa 71,3% der ausstehenden Gatos Silver Aktien haben auf der außerordentlichen Hauptversammlung für den Fusionsbeschluss gestimmt. Auch die Aktionäre von First Majestic haben die Ausgabe von bis zu 190.000.000 Stammaktien für die Fusion genehmigt.
Nach den Bedingungen der Fusion erhalten die Aktionäre von Gatos Silver 2,55 First Majestic Aktien für jede gehaltene Gatos Silver Aktie, wobei Bruchteile in bar ausgezahlt werden. Die Transaktion soll voraussichtlich vor der Markteröffnung am 16. Januar 2025 abgeschlossen werden, vorbehaltlich der verbleibenden üblichen Abschlussbedingungen.
- Strong stockholder support with 71.3% approval for the merger
- 2.55:1 share exchange ratio provides clear value proposition for shareholders
- Quick closing timeline indicates smooth transaction progress
- Potential share dilution for existing shareholders through issuance of up to 190 million new First Majestic shares
Insights
This merger approval represents a significant strategic consolidation in the silver mining sector. The exchange ratio of 2.55 First Majestic shares for each Gatos Silver share implies a substantial premium and values Gatos Silver at approximately
The deal strengthens First Majestic's position as a premier silver producer by incorporating Gatos Silver's flagship Cerro Los Gatos mine in Mexico, which boasts high-grade silver deposits and significant exploration potential. The transaction timing aligns with the broader consolidation trend in precious metals mining, where larger operators are acquiring quality assets to achieve economies of scale and optimize operational efficiencies.
Post-merger, the combined entity will benefit from enhanced market presence, improved trading liquidity and a stronger balance sheet. For existing Gatos Silver shareholders, the share-based transaction structure provides continued exposure to silver market upside while mitigating single-asset risk through First Majestic's diversified portfolio.
The merger's impact on the broader silver mining landscape is substantial, creating a more formidable competitor in the mid-tier precious metals space. The approval timing is opportune, as silver prices have shown resilience and the sector is experiencing increased investor interest due to industrial demand from green technology applications.
The transaction structure, using an all-share consideration, preserves capital for operational investments and suggests management's confidence in realizing post-merger value creation. The rapid closing timeline, scheduled for January 16, minimizes execution risk and market uncertainty. The deal's completion will likely trigger index rebalancing activities, potentially creating short-term trading opportunities as passive funds adjust their positions.
VANCOUVER, British Columbia, Jan. 14, 2025 (GLOBE NEWSWIRE) -- Gatos Silver, Inc. (NYSE:GATO) (TSX:GATO) (“Gatos Silver” or the “Company”) today announced that Gatos Silver’s stockholders have voted to adopt the proposal related to the previously announced merger agreement between First Majestic Silver Corp. (“First Majestic”) and Gatos Silver (the “Merger Resolution”). The vote was held at Gatos Silver’s special stockholders meeting earlier today.
The Merger Resolution was required to be approved by Gatos Silver stockholders representing a majority of the outstanding shares of common stock of Gatos Silver (“Gatos Silver Shares”). Approximately
In addition to the approval by Gatos Silver stockholders, First Majestic shareholders approved the issuance of up to 190,000,000 common shares of First Majestic (“First Majestic Shares”) in connection with the Merger Agreement at its special meeting today. Upon the consummation of the merger, Gatos Silver stockholders will receive 2.55 First Majestic Shares for each Gatos Silver Share held, with any fractional shares to be paid in cash, without interest.
The closing of the transaction is expected to occur prior to market open on January 16, 2025, subject to the satisfaction or waiver of the remaining customary closing conditions.
About Gatos Silver
Gatos Silver is a silver dominant exploration, development and production company that discovered a new silver and zinc-rich mineral district in southern Chihuahua State, Mexico. As a
Investors and Media Contact
André van Niekerk
Chief Financial Officer
investors@gatossilver.com
(604) 424 0984
Forward-Looking Statements
This press release contains statements that constitute “forward looking information” and “forward-looking statements” within the meaning of U.S. and Canadian securities laws. All statements other than statements of historical facts contained in this press release, including statements regarding the completion of the merger with First Majestic and the timing thereof are forward-looking statements. Forward-looking statements are based on management’s beliefs and assumptions and on information currently available to management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements, and such other risks and uncertainties described in our filings with the U.S. Securities and Exchange Commission and Canadian securities commissions. Gatos Silver expressly disclaims any obligation or undertaking to update the forward-looking statements contained in this press release to reflect any change in its expectations or any change in events, conditions, or circumstances on which such statements are based unless required to do so by applicable law. No assurance can be given that such future results will be achieved. Forward-looking statements speak only as of the date of this press release.++
FAQ
What is the exchange ratio for GATO shares in the First Majestic merger?
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