MAG Silver (MAG) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition creates a leading precious metals company with a superior portfolio of silver assets, including a 44% interest in the high-grade, low-cost Juanicipio mine, strengthening the acquirer's Americas-focused strategy and long-term value for both shareholder groups.

• Enhances position as a top silver producer with increased reserves, resources, and exposure to growth projects like Deer Trail, Larder, La Colorada Skarn, and potential Escobal reopening.

• MAG shareholders gain diversified exposure to ten mines and a robust growth pipeline.

• Addresses single-asset and jurisdiction risk for MAG by integrating its core asset into a diversified portfolio.

Financial terms and conditions

• Total consideration of $2.1 billion, or $20.54 per share, with $500 million in cash and 0.755 shares per MAG share, subject to proration; shareholders can elect cash, shares, or a mix, with aggregate limits.

• Premiums of 21% and 27% to closing price and 20-day VWAP, respectively, as of May 9, 2025.

• MAG shareholders will own about 14% of the combined company post-transaction on a fully diluted basis.

• $60 million break fee applies.

Synergies and expected cost savings

• Silver production to increase by 34% to 27.4 million ounces in 2025, solidifying position as the second-largest primary silver producer globally.

• Juanicipio's low all-in sustaining costs ($6–$8/oz) will reduce pro forma costs to $13–$15/oz.

• Juanicipio expected to generate ~$200 million in free cash flow in 2025 ($98 million pro forma), contributing high-margin ounces and 23% growth over three years.

• Synergies anticipated from operational proximity and collaboration with Fresnillo.