Gatos Silver Inc. to be acquired by First Majestic Silver Corp. for US$970M

On January 14, 2025, First Majestic completed the acquisition of Gatos Silver.

On September 5, 2024, First Majestic Silver Corp. ("First Majestic") and Gatos Silver, Inc. ("Gatos") entered into a definitive merger agreement (the "Definitive Agreement") pursuant to which First Majestic will acquire all of the issued and outstanding common shares of Gatos (the "Transaction"). Under the terms of the Definitive Agreement, Gatos shareholders will receive 2.550 common shares of First Majestic for each common share of Gatos held. The consideration implies a total offer value of US$13.49 per common share of Gatos based on the closing price of First Majestic’s common shares on the New York Stock Exchange (the “NYSE”) on September 4, 2024, and represents a 16% premium based on each company’s closing prices and 20-day volume weighted average prices (“VWAP”) on the NYSE ending September 4, 2024. The proposed Transaction implies a total equity value for Gatos of approximately US$970 million.  The Transaction is expected to close in early 2025, subject to the satisfaction of customary closing conditions, including approvals of the shareholders of First Majestic and Gatos, clearance under Mexican anti-trust laws, and approval of the listing of the First Majestic common shares to be issued under the Transaction on both the Toronto Stock Exchange and the NYSE. 

Gatos 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% owner of the Los Gatos Joint Venture (the “LGJV”), 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.

McCarthy Tétrault is advising Gatos Silver with a team led by Roger Taplin, Adam Taylor and Shawn Doyle that includes Joe Furness, Peter Quon, Eva Bellissimo, Robert Antonecchia, Michele Zinsli Ma, Isabel Gonzales, Emma Good, Liam Peet-Pare, Dinah Holliday (Business), Susan Nickerson, Julia Miller (Pensions), Drew Morier, Matthew Kraemer (Tax), Jason Gudofsky, Erin Keogh (Competition), John Boscariol (Trade), Lauren Soubolsky (Labour and Employment), Sandra Lemieux (Litigation) and Natalie Estevan (Financial Services).