Pan American Silver (TSX, NYSE: PAAS) has secured final regulatory approval to complete its $2.1-billion (C$2.9-billion) acquisition of MAG Silver (TSX, NYSE: MAG), cementing control over one of Mexico’s most productive silver assets.
The backing from Mexico’s Federal Economic Competition Commission will allow the Canadian precious metals miner to close the transaction on Sept. 4, it said on Monday.
The takeover hands Pan American MAG’s 44% interest in the high-grade Juanicipio mine in Zacatecas operated by Fresnillo (LSE: FRES). It also adds two early-stage projects: Deer Trail in Utah and Larder in Ontario.
The acquisition of MAG brings into the company’s portfolio one of the best silver mines in the world, CEO Michael Steinmann said when announcing the deal in May.
“We see future growth opportunities through the significant exploration potential at Juanicipio, as well as MAG’s Deer Trail and Larder properties,” Steinmann said.
Output fall
Juanicipio produced 4.5 million oz. of silver in the first quarter, along with gold, lead and zinc by-products, at an all-in sustaining cost of $10.64 per oz. of silver equivalent. For 2025, output is projected at 14.7 million to 16.7 million oz. of silver. That’s a 10% to 21% drop from the 18.6 million oz. silver and 39,039 oz. gold produced in 2024.
The deal between the Vancouver-based producers underscores a wave of consolidation in the silver sector, driven by a rally that has lifted spot silver prices more than 13% this year.
Other recent transactions include First Majestic Silver’s (TSX, NYSE: AG) $970 million purchase of Gatos Silver, Coeur Mining’s (NYSE: CDE) $1.7 billion acquisition of Silvercrest (TSX: SIL; NYSE: SILV), and Endeavour Silver’s (TSX: EDR) $145 million deal for Peruvian miner Minera Kolpa.
Pan American, already one of the world’s largest silver producers, operates mines across Canada, Mexico, Peru, Brazil, Bolivia, Chile and Argentina. It also holds the Escobal mine in Guatemala, currently on care and maintenance.
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