Mining News
Pan American Silver completes acquisition of Yamana Gold
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(Kitco News) - Pan American Silver (NASDAQ: PAAS) (TSX: PAAS) announced on Friday that the company has completed its previously announced acquisition of all of the issued and outstanding common shares of Yamana Gold (TSX: YRI) (NYSE: AUY).
The company said that the arrangement adds four producing mines to Pan American’s portfolio: the Jacobina mining complex in Brazil, the El Peñón and Minera Florida mines in Chile, and the Cerro Moro mine in Argentina. It also adds the MARA development project in Argentina.
Pan American plans to provide a 2023 operating outlook inclusive of the Latin American assets acquired through the arrangement, as well as a consolidated forecast for annual general and administrative, exploration and project development costs, in the mid-second quarter of 2023.
President and CEO Michael Steinmann commented, “This acquisition is transformative for Pan American, significantly increasing the scale of our operations in Latin America where we have been operating for nearly three decades.
“We expect a material increase in our production of silver and gold, while we continue to provide a preferred way to invest in silver through large silver mineral reserves and growth opportunities, further enhanced by the increase in our market capitalization and trading liquidity. The acquisition is firmly aligned with our strategy of creating value by pursuing attractive growth opportunities, improving operating margins and extending mine life.”
According to a company press release, upon closing of the arrangement, existing Pan American shareholders own approximately 58% of the Pan American shares and former Yamana shareholders own approximately 42% of the Pan American shares.
The company said that Yamana shares are expected to be delisted from the Toronto Stock Exchange as of the closing of the market on April 3, 2023, and from the New York Stock Exchange as of the opening of the market on April 3, 2023.
Pan American is a leading producer of precious metals in the Americas, operating silver and gold mines in Canada, Mexico, Peru, Bolivia, Argentina, Chile and Brazil. The company also owns the Escobal mine in Guatemala that is currently not operating.|
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