Morning Briefing: Pan American Silver to Acquire MAG Silver
Good morning and welcome back to the Mining Stock Daily morning briefing. I’m Trevor Hall.
It's Monday, May 12th.
We have a deal. After discussion over the weekend, the US and China have temporarily agreed to lower tariffs on products. The US tariff rate will drop to 30% while Chinese duties of US goods will drop to 10%. The temporary deal is for 90 days. Markets in pre-market hours are moving, with the major stock indices up significantly before the opening bell. Bond yields are also moving higher as market expectations for a Fed Rate Cut move lower after the announced deal. The futures market now implies just an 11.3% likelihood of a reduction in June. Gold is currently down more than 3%, but seeing some support jus above $3,200/ounce. Silver is also seeing support around $32/oz.
We’ll get to the news from the miners and explorers here in a moment, but first a quick word about today’s sponsor.
This episode of Mining Stock Daily is brought to you by…Calibre Mining.
Calibre is a Canadian-listed, Americas focused, growing mid-tier gold producer with a strong pipeline of development and exploration opportunities across Newfoundland & Labrador in Canada, Nevada and Washington in the USA, and in Nicaragua. The company recently announced a deal to merge with Equinox Gold. The transaction will create an Americas-focused diversified gold producer with a portfolio of operating mines in five countries anchored by two high-quality, long-life, low-cost Canadian gold mines, Greenstone and Valentine. You can learn more at https://www.calibremining.com/
And here’s what you need to know this morning…..
Pan American Silver has entered into a definitive agreement to acquire all of the issued and outstanding common shears of MAG Silver, which holds the 44% JV in the Juanicipio Mine with partners Fresnillo. Under the terms of the Transaction, MAG shareholders will receive total consideration of approximately $2.1 billion representing $20.54 per MAG share, based on the closing price of Pan American’s common shares on the New York Stock Exchange on Friday. Consideration will be comprised of a mix of cash totaling $500 million and 0.755 Pan American shares per MAG share. The consideration represents premiums of approximately 21% and 27%, respectively. Following completion of the Transaction, existing MAG shareholders will own approximately 14% of Pan American shares on a fully diluted basis. The Transaction is expected to close in the second half of 2025. (NYSE: PAAS) (TSX: PAAS) (NYSEAM:MAG) (TSX:MAG) News Release
Omai Gold Mines announced results from its ongoing 2025 drill program, focused on expanding the large Wenot deposit at the Company's 100%-owned Omai Gold Project in Guyana, South America. Assays were reported for three holes and one hole extension totaling 2,607m drilled. Selected highlights included 3.56 g/t Au over 21.8m, 28 g/t Au over 9.3m and 2.32 g/t Au over 19.8m. The company noted that much of the drilling in this years campaign is well outside of the current pit limits of their mineral resource and its preliminary economic assessment. With the positive results, the company anticipates surpassing their 15,000m forecast for drilling. (TSXV: OMG) (OTCQB: OMGGF) News Release
Kenorland Minerals has completed the exercise of Sumitomo's and Centerra's 'top-up right' to retain its 10.1% and 9.9% interest in the Company, respectively, as granted within the investor rights agreements dated November 5, 2021 and May 28, 2024. An aggregate of 209,054 common shares were issued at a price of $1.533 per share for aggregate consideration of $320,479.78. (TSXV: KLD) (OTCQX: KLDCF) News Release
Luca Mining reported drill results from 7 underground diamond drill holes from its 5,000m Phase One program at the Campo Morado polymetallic VMS mine in Mexico. Hole 12 drilled 3.8m of 12.54 g/t AuEq within a wider 15.8m interval of 4.87 g/t AuEq. This represents the discovery of a new zone within the G9 Deposit. This year's underground exploration campaign is the first substantive exploration the mine has seen since 2014. The objective of this initial stage of underground exploration drilling is to test under-drilled areas close to active mine workings that offer high potential for quickly adding new mineable resources that will impact mine planning. (TSXV: LUCA) (OTCQX: LUCMF) News Release
GFG Resources says they have discovered a new footwall zone, termed FW3 at the Aljo Mine Target on the Goldarm Project in Ontario. Hole 19 intersected multiple intervals relating to the Hangingwall and Main while on its way to Footwall. Results were 4.39 g/t Au over 3.4m, 7.76 g/t Au over 1.5m and 5.24 g/t over 1 m all in the Hangingwall Zone. The FW Zone returned 7.26 g/t Au over .6m and 4.2 g/t Au over .7m. Assays remain pending for an additional 5 holes at Aljo. (TSXV: GFG) (OTCQB: GFGSF) News Release
Awalé Resources provided assay results from 1,168m of diamond drilling in six holes at the high-grade Empire target, Odienné Project in Côte d'Ivoire. Empire, which is located 2.5km from the Charger Discovery, had not been drilled since 2020. All holes intersected significant mineralization, including OEDD-127 which returned 15m @ 5.2 grams per tonne ("g/t") gold ("Au") from 215m, including 10m @ 7.5 g/t Au from 215m. This intercept is significant as it is located at a similar depth to hole OEDD-15 and shows the potential of further high-grade mineralization at depth on the Empire zone, according to the company. The updated geology model also suggests that other zones may be open to the southeast. Exploration to date has covered only 5 km of Empire's 20 km trend. (TSXV: ARIC) News Release
Gladiator Metals published assay results from a further five holes from its recently completed 23 hole phase 1 drill program at Cowley Park. Drilling was designed to target strike extensions to previously identified high-grade copper skarn mineralization with recent results extending mineralization by at least 250m of strike and drilled to a depth of more than 200m down dip. Today’s results included hole 070D1 which returned 49.5m of 1.17% Cu and included 14m of 3.13% Cu. That is a 50m step out extension. Other results today included 66m of 1% Cu and 78m of .92% Cu. (TSXV: GLAD) (OTCQB: GDTRF) News Release
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That’s it for today everyone. Have a great day. Stay safe.
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