First Majestic to buy Gatos Silver in all-stock deal valued at US$970M
VANCOUVER — First Majestic Silver Corp. has signed a deal to buy Gatos Silver Inc. in a transaction valued at US$970 million.
Under the agreement, Gatos shareholders will receive 2.55 shares of First Majestic for each Gatos share held.
Gatos holds a 70 per cent interest in the Los Gatos joint venture, which owns the Cerro Los Gatos underground silver mine in Chihuahua, Mexico.
Once the deal is completed, existing Gatos shareholders will own about 38 per cent of the combined company on a fully diluted basis.