MAG Silver Corporation Updates on Shareholder Election Results
All amounts expressed in U.S. dollars unless otherwise indicated.
MAG Silver Corp. (TSX / NYSE American: MAG) has released preliminary results regarding the elections made by its shareholders concerning the form of consideration they wish to receive under the arrangement involving Pan American Silver Corp. This arrangement involves the acquisition of all issued and outstanding shares of MAG Silver Corp. by Pan American. The recent deadline for making such elections was set for August 27.
The company has confirmed that all necessary approvals for completing the arrangement have been secured. This includes competitions approvals from both Mexico and Canada, validation from MAG shareholders, and a Supreme Court order from British Columbia. MAG Silver anticipates closing this arrangement around September 4, pending the settling of customary closing conditions.
Election Results Overview
As per the arrangement agreement from earlier this year, entitled holders of MAG Shares had the option to elect by the deadline to receive one of two forms of consideration:
1. Cash Consideration
Holders could opt to receive $20.54 in cash for each MAG Share held. This option is commonly referred to as the Cash Consideration.
2. Share Consideration
The alternative option offered shareholders $0.0001 in cash along with 0.755 of a common share of Pan American Silver for each MAG Share held. This dual offer, known as the Share Consideration, is also subject to proration based on total participation.
It is essential to note that if any shareholder failed to make a proper election or chose not to, they would automatically be considered to have selected the Share Consideration, again subject to proration. Ultimately, the total consideration all shareholders will receive comprises $500 million in cash, with any remaining distribution in shares of Pan American. Thus, a shareholder may find themselves receiving both cash and shares, irrespective of their individual choices.
Shareholder Participation Insights
From the initial data gathered prior to the election deadline, the preliminary results showed the following:
- Approximately 1.71% of shareholders opted for the Cash Consideration.
- A significant 30.55% chose the Share Consideration.
- An estimated 67.74% either did not vote or submitted invalid forms, defaulting to the Share Consideration.
These results are still preliminary, pending the final certified counts, which should be available shortly before the arrangement's close. Once finalized, the distribution of consideration will be calculated per the terms laid out in the arrangement agreement.
Future Steps for MAG Silver Corp.
Additional details regarding the arrangement and procedures for exchanging MAG Shares can be found in the company's management circular. Following this planned acquisition, MAG Shares are set to be delisted from both the Toronto Stock Exchange and NYSE American.
About MAG Silver Corp.
MAG Silver Corp. is a Canadian mining and exploration company dedicated to advancing its precious metals projects across the Americas. The corporation operates a significant joint venture in the high-yield Juanicipio Mine, which can handle a production capacity of 4,000 tonnes per day. Located in what is acknowledged as the world’s foremost silver mining region, MAG is employing extensive exploration programs to discover new high-grade mineral targets. In addition to its flagship asset, the company is actively exploring the Deer Trail Project in Utah and the Larder Project in Canada, both of which hold significant potential.
Frequently Asked Questions
What is the status of MAG Silver Corp.'s arrangement with Pan American Silver?
The arrangement has received necessary approvals, and both companies anticipate closing the transaction soon, pending any closing conditions.
How many shareholders participated in the election for consideration?
Preliminary figures indicate that around 1.71% chose cash, 30.55% opted for shares, and roughly 67.74% did not make a valid election.
What might happen if I did not make an election?
If no valid election was made, shareholders will default to receiving the Share Consideration under the arrangement.
Where can I find more information on the arrangement?
More details can be accessed in the company's management information circular, which is available on their investor website.
What are MAG's main projects?
MAG Silver is primarily focused on its stake in the Juanicipio Mine and is actively exploring the Deer Trail and Larder Projects, showcasing strong potential in the precious metals sector.
