Gatos shareholders would receive 2.550 common shares of First Majestic, or $13.49, for each share they own. This implies a premium over the closing price on Sep. 4, and the 20-day volume weighted average prices up until that date.
After the closing, expected early next year, the merged company would produce 30 to 32 million ounces of silver-equivalent a year, including 15 million to 16 million ounces of silver, while delivering cost savings as well as supply chain and procurement synergies.
Gatos shareholders will then hold about 38% of First Majestic’s shares on a fully diluted basis.
The Los Gatos district comprises 14 mineralized zones identified to date, including three silver-lead-zinc deposits: the Cerro Los Gatos mine, the Esther deposit, and the Amapola deposit.
Vancouver-based First Majestic also owns the La Encantada silver mine in northern Mexico’s Coahuila state and has a portfolio of development and exploration…
