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Pan American Silver and Tahoe Resources Merge to Create World’s Premier Silver Mining Company

Published: December 7, 2018 |

[Click image to enlarge]

[Click image to enlarge]

Pan American Silver Corp. and Tahoe Resources Inc. have entered into a definitive agreement for Pan American to acquire all of the outstanding shares of Tahoe pursuant to a plan of arrangement, creating the world’s premier silver mining company. Shareholders of Tahoe will be entitled to elect to receive common shares of Pan American and/or cash in exchange for their shares of Tahoe.

Additional consideration will be in the form of the right to a contingent payment in common shares of Pan American tied to the restart of the Escobal mine in Guatemala.

“The combination of Pan American and Tahoe will establish the world’s premier silver mining company with an industry-leading portfolio of assets, superior growth opportunities and attractive operating margins. This transaction doubles our silver reserves and further improves our cost profile. We will build on that strong foundation, optimizing these high-quality assets to deliver profitable growth and superior returns,” said Michael Steinmann, president and chief executive officer of Pan American Silver.

“We are proud of our 25-year track record of operating mines in Latin America in an ethical, collaborative and sustainable way. Our reputation as a responsible operator reflects our ability to build successful partnerships with the communities around our operations, respecting the diversity of local populations and safeguarding the natural environment. We are looking forward to applying this experience at Escobal, and working with the local communities towards concluding the consultation process and gaining their support to enable the restart of the mine,” added Steinmann.

“This transaction allows our shareholders to participate in the creation of the world’s premier silver company with the contribution of the world-class Escobal mine to Pan American’s existing asset base. In addition to the upfront premium, we will continue to participate in the upside inherent in a restart of Escobal through the CVRs. Pan American’s excellent track record of developing mines and fostering strong, mutually beneficial relationships with local stakeholders gives us confidence that the combined company will be best positioned to maximize value for shareholders,” said Kevin McArthur, executive chair of Tahoe Resources.

Highlights of the combined entity:

• World-class primary silver asset portfolio, diversified across the Americas.
 
• World’s largest silver reserve base and silver measured and indicated resource base.
 
• Largest publicly-traded silver mining company by free float.
 
• Superior operating metrics with industry-leading production, growth and margins.
 
• Robust growth profile with the restart of the Escobal silver mine following completion of the consultation process and community engagement. Escobal is a well built, turn-key operation with minimal capital outlay and development risk. The mine produced 21Moz of Ag at US$8.63/oz Ag AISC during its last four quarters of undisturbed production.
 
• Additional upside through expansion of the La Colorada mine following the recent exploration discovery and potential development of Navidad, one of the world’s largest undeveloped primary silver deposits.
 
• Gold assets well positioned to deliver low-cost production following recent capital investments.
 
• Management team with a 25-year proven track record of responsibly building and operating mines in Latin America.
 
• Strong financial position and access to capital, enabling the Company to advance key growth projects.
 
• Potential non-core asset sales and operating synergies to provide further strengthening of the balance sheet.

It is anticipated that the special shareholder meetings of Tahoe and Pan American shareholders to consider the Transaction will be held in January 2019. The Transaction is expected to close in the first quarter of 2019.


About Pan American Silver
Pan American Silver Corp. is the world’s second largest primary silver producer, providing enhanced exposure to silver through a diversified portfolio of assets, large reserves and growing production. They own and operate six mines in Mexico, Peru, Argentina and Bolivia. Pan American Silver maintains a strong balance sheet, has an established management team with proven operating expertise, and is committed to responsible development. Founded in 1994, the company is headquartered in Vancouver, B.C.

To stop by Pan American Silver’s website, CLICK HERE


About Tahoe Resources
Tahoe Resources is a mid-tier precious metals company with a diverse portfolio of mines and projects in Canada, Guatemala and Peru. Tahoe is led by experienced mining professionals dedicated to creating sustainable value for all of its stakeholders through responsible mining.

To stop by Tahoe Resources’ website, CLICK HERE

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