Pan American Silver Completes Acquisition of Yamana Gold
Vancouver, British Columbia--(BUSINESS WIRE)--Jul. 6, 2023
Pan American Silver Corp. (NASDAQ: PAAS) (TSX: PAAS) announced that it has closed the acquisition of Yamana Gold Inc. (NYSE: AUY) (TSX: YRI) (LSE: AUY) ("Yamana").Transaction Highlights
- Creates a leading global precious metals producer with a diversified portfolio of high-quality, long-life assets across the Americas.
- Enhances Pan American's silver exposure through a significant increase in silver reserves and production.
- Provides enhanced scale and financial flexibility to optimize operations, reduce costs, and pursue growth opportunities.
Strategic Rationale
The acquisition of Yamana aligns with Pan American's strategic objectives to:
- Increase silver production and reserves.
- Diversify its asset portfolio across multiple jurisdictions.
- Enhance its operational efficiency and cost structure.
- Strengthen its financial position and flexibility.
The combined company will have a balanced portfolio of silver and gold operations, with a strong focus on sustainability and responsible mining practices.
Financial Considerations
The total consideration for the acquisition was approximately $1.9 billion, consisting of:
- $875 million in cash.
- 121.1 million Pan American shares.
- Assumption of $400 million of Yamana's debt.
The acquisition was financed through a combination of cash on hand and a new $1.2 billion senior secured credit facility.
Leadership and Integration
Chris Guthrie, President and CEO of Pan American, will lead the combined company. The integration process is expected to be completed within 12 to 18 months.
Guthrie commented, "We are excited to complete this transformational acquisition, which creates a leading global precious metals producer with a diversified portfolio of high-quality assets across the Americas. We believe that the combined company is well-positioned to deliver significant value to our shareholders, employees, and other stakeholders."
Advisors
BMO Capital Markets acted as financial advisor to Pan American. Fasken Martineau DuMoulin LLP acted as legal counsel to Pan American.
تعليقات