This entry is sourced from Gatos Silver's Exhibit 99.1 press release filed as part of an 8-K on September 5, 2024. The release describes a signed definitive merger agreement; it does not state the deal had closed, and shareholder and other customary approvals were still pending as of this release.
National Bank Financial acted as exclusive financial advisor to First Majestic, with TD Securities separately providing a fairness opinion to First Majestic's board of directors. BofA Securities acted as exclusive financial advisor to Gatos, with GenCap Mining Advisory Ltd. providing a separate fairness opinion to the Special Committee of the Gatos board of directors.
Bennett Jones LLP and Dorsey & Whitney LLP acted as legal advisors to First Majestic. White & Case LLP and McCarthy Tetrault LLP acted as legal advisors to Gatos.
Under the terms disclosed, Gatos shareholders will receive 2.550 common shares of First Majestic for each Gatos common share held, implying consideration of US$13.49 per Gatos share based on First Majestic's NYSE closing price on September 4, 2024, and a total equity value for Gatos of approximately US$970 million. The exchange ratio represented a 16% premium based on each company's closing prices and 20-day volume-weighted average prices on the NYSE through September 4, 2024. Following completion, existing Gatos shareholders were expected to own approximately 38% of First Majestic shares on a fully diluted basis.
The release does not disclose an expected closing date, a termination fee, or the specific approval thresholds required from Gatos or First Majestic shareholders. No separate enterprise value (inclusive of debt or cash) is provided beyond the stated equity value, and the fee arrangements for National Bank Financial, TD Securities, BofA Securities, and GenCap Mining Advisory are not disclosed.