Pan American Silver Corp. has announced a definitive agreement to acquire MAG Silver Corp. for $2.1 billion. This strategic acquisition aims to bolster Pan American's mining portfolio by consolidating operations and enhancing its standing in the silver mining industry.

The acquisition will see Pan American acquire all outstanding shares of MAG Silver. This move is anticipated to boost the company’s silver production and reserves by harnessing MAG Silver's high-quality assets, potentially leading to greater operational efficiencies and enhanced growth prospects. On the financial front, the deal is expected to positively impact Pan American's earnings per share and free cash flow. However, the transaction is contingent on standard closing conditions, including regulatory approvals and the consent of MAG Silver shareholders, with completion anticipated in the second half of 2025.

This development follows Pan American's $4.8 billion acquisition of Yamana Gold Inc. earlier this year, completed in March 2023, as reported by BLG. That acquisition added several significant mines to its portfolio, strengthening its operations in the Americas with assets such as the Jacobina mining complex in Brazil. By integrating MAG Silver's assets, Pan American reinforces its position as a leading precious metals producer in the region.