On Nov. 14, Pan American Silver Corp. announced it is purchasing Tahoe Resources in a $1.1-billion deal. The merger creates the world’s largest silver reserve base and silver measured and indicated resource base, as well as the largest publicly traded silver mining company by free float.
Tahoe said Pan American would acquire all outstanding Tahoe shares as part of the agreement. Tahoe shareholders would be entitled to receive common shares of Pan American and/or cash in exchange for their shares of Tahoe, or they can receive payment in common shares of Pan America, which is tied to the restart of the Tahoe-owned Escobal mine in Guatemala.
In Canada, Tahoe Resources operates the underground Timmins West and Bell Creek gold mines, along with the Bell Creek Mill, located in the Porcupine Mining Division, about 20 km northeast of Timmins. The Bell Creek Mill, which processes ore from both operations, has a capacity of 4,000 tonnes per day. It’s estimated production for 2018 is 160,000 to 175,000 gold ounces.
Nevada-based Tahoe acquired the Bell Creek Mine in April 2016 as part of its acquisition of Lake Shore Gold Corp. Bell Creek has been in operation since 2012. The complex is estimated to be in operation until 2024.
Headquartered in Vancouver,
Pan American Silver Corp. owns and operates silver mines in Mexico, Peru, Bolivia and Argentina.
The deal is subject to regulatory approvals and is expected to close in