Published: September 9, 2024 |

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First Majestic Silver and Gatos Silver have entered into a definitive merger agreement where First Majestic will acquire all of the issued and outstanding common shares of Gatos for $970 million.

Gatos is a silver dominant producer with a 70 percent interest in the Los Gatos joint venture, which owns the producing Cerro Los Gatos underground silver mine in Chihuahua, Mexico. Following completion of the transaction, existing Gatos shareholders will own approximately 38 percent of First Majestic shares on a fully-diluted basis.

“The acquisition of Gatos Silver is a highly compelling and transformative transaction that meaningfully enhances First Majestic’s operating platform through the addition of 70 percent of Cerro Los Gatos in the state of Chihuahua, Mexico. Mexico is a country that First Majestic has operated in for more than 20 years, and we are extremely excited to deploy our operating expertise within these mining districts to deliver operational synergies and exploration success,” said Keith Neumeyer, president and chief executive officer of First Majestic.

“We look forward to working with the operating team at Cerro Los Gatos and with our new joint venture partner Dowa Metals & Mining, and we are pleased to welcome all Gatos shareholders as they transition into being shareholders of First Majestic going forward,” added Neumeyer.

“We are pleased to enter into this transaction with First Majestic, as it provides our shareholders an attractive immediate premium and the opportunity to retain exposure to the high quality, long-life Cerro Los Gatos asset, now within a well-established intermediate primary silver producer. This transaction also provides our shareholders with the benefits of First Majestic’s enhanced capital markets presence, liquidity and balance sheet, while combining its local Mexican expertise and history of operations with our history of successful performance,” said Dale Andres, chief executive officer of Gatos.

“I want to thank the Cerro Los Gatos operating team for its dedication. I am confident that the combination of our strong operating teams will create an opportunity to generate significant value for all shareholders,” added Andres.

The transaction is expected to close in early 2025, subject to the satisfaction of customary closing conditions. The definitive agreement and transaction have been unanimously approved by the board of directors of each of First Majestic and Gatos.

First Majestic Silver is a publicly traded mining company focused on silver and gold production in Mexico and the United States. First Majestic presently owns and operates the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine, and the La Encantada Silver Mine, all located in Mexico, as well as a portfolio of development and exploration assets, including the Jerritt Canyon Gold project located in northeastern Nevada.

Gatos Silver is a silver dominant exploration, development, and production company that discovered a new silver and zinc-rich mineral district in southern Chihuahua State, Mexico. As a 70 percent owner of the Los Gatos (LGJV) joint venture, the company is primarily focused on operating the Cerro Los Gatos mine and on growth and development of the Los Gatos district. The LGJV consists of approximately 103,000 hectares of mineral rights, representing a highly prospective and under-explored district with numerous silver-zinc-lead epithermal mineralized zones identified as priority targets.

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