Gatos shareholders would obtain 2.550 frequent shares of First Majestic, or $13.49, for every share they personal. This suggests a premium over the closing value on Sep. 4, and the 20-day quantity weighted common costs up till that date.
After the closing, anticipated early subsequent yr, the merged firm would produce 30 to 32 million ounces of silver-equivalent a yr, together with 15 million to 16 million ounces of silver, whereas delivering price financial savings in addition to provide chain and procurement synergies.
Gatos shareholders will then maintain about 38% of First Majestic’s shares on a totally diluted foundation.
The Los Gatos district includes 14 mineralized zones recognized thus far, together with three silver-lead-zinc deposits: the Cerro Los Gatos mine, the Esther deposit, and the Amapola deposit.
Vancouver-based First Majestic additionally owns the La Encantada silver mine in northern Mexico’s Coahuila state and has a portfolio of growth and exploration initiatives, together with the Jerritt Canyon gold challenge in Nevada.
Shares in Gatos jumped nearly 8% in pre-market buying and selling in New York to hit $12.54 every. The inventory has had a rare efficiency this yr, recording an 89.25% improve thus far.
Extra to return…