Pan American Silver has completed its acquisition of Tahoe Resources in a $1.1-billion deal that was announced last November.
“The completion of the arrangement establishes the world's premier silver mining company with an industry-leading portfolio of assets, a robust growth profile and attractive operating margins,” Michael Steinmann, president and CEO of Pan American Silver, said in a Feb. 22 news release.
“We are also now the largest publicly traded silver mining company by free float, offering silver mining investors enhanced scale and liquidity.”
As part of the arrangement, Tahoe shareholders had the right to elect to receive either US$3.40 in cash or 0.2403 of a Pan American share for each Tahoe share.
The results of a Jan. 3 election show that holders of 23,661,084 Tahoe shares made the cash election, while holders of 290,226,406 Tahoe shares made, or were deemed to have made, the share election.
(Tahoe shareholders who did not make an election by the deadline of 4:30 pm EST on Jan. 3, were deemed to have made the share election.)
Tahoe shareholders also received “contingent value right” (CVR) for each Tahoe share. Each CVR will be exchanged for 0.0497 of a Pan American share once operations resume at the Escobal silver mine in Guatemala.
In Northern Ontario, Tahoe owns and operates the Timmins West gold complex, which includes the Timmins West and Bell Creek gold mines, as well as the Bell Creek Mill, all located in the Porcupine Mining Division, located 20 kilometres northeast of Timmins
Shares of Tahoe Resources will be delisted from the Toronto Stock Exchange on Feb. 26.
Headquartered in Vancouver, B.C., Pan American owns operating silver mines in Mexico, Peru, Canada, Argentina and Bolivia, in addition to the Escobal Mine in Guatemala.
