Pan American Silver, precious-metals miner, and MAG Silver, project partner in Mexico’s Juanicipio mine, have received approval from Mexico’s competition regulator for Pan American’s $2.1-billion acquisition of MAG, clearing the deal to close on or about September 4, 2025. MAG investors can elect $20.54 in cash per share or $0.0001 plus 0.755 of a Pan American share; the total package includes $500 million in cash with the balance in Pan American stock.
Deal mechanics and immediate implications
The companies said all regulatory, shareholder and court approvals are now in hand, with the Mexican nod removing the final antitrust condition. Completion will fold MAG’s 44% interest in the high-grade Juanicipio mine in Zacatecas into Pan American’s portfolio; Fresnillo retains 56% and continues as operator. The consideration mix allows MAG holders to choose cash or equity exposure to the enlarged group.
Asset profile: Juanicipio’s production and outlook
Juanicipio ramped through 2024, delivering 18.6 million ounces of silver and 26.8 million ounces silver-equivalent, according to MAG’s annual results. MAG’s disclosures indicate 2025 silver guidance in the mid-teens of millions of ounces on a 100% basis, with a 4,000 t/d plant and rising base-metal by-products under Fresnillo’s operatorship. Second-quarter 2025 updates pointed to steady gold grades and improving lead and zinc grades as the mine optimizes stopes and metallurgy.
Strategic fit and portfolio balance
For Pan American, adding Juanicipio consolidates a large, low-cost silver stream in Mexico alongside existing operations across the Americas and provides optionality while its Escobal mine in Guatemala remains suspended pending ILO-169 consultation with the Xinka people. Community opposition has persisted in 2025, keeping restart timing uncertain and increasing the strategic value of producing assets like Juanicipio within Pan American’s mix.
Company Background and Market Context
Pan American Silver is headquartered in Vancouver with a multi-jurisdictional portfolio spanning Mexico, Peru, Bolivia, Argentina, Brazil and Guatemala. MAG Silver has been a partner-developer focused on Juanicipio, where Fresnillo—Mexico’s largest primary-silver producer—operates and manages underground development and processing. Reuters first reported the $2.1 billion deal terms in May, outlining the $500 million cash component and 0.755 share exchange option; Monday’s Mexican approval confirms the final regulatory piece.
Silver is a dual-use metal: an industrial input for electronics and solar photovoltaics and a financial asset that trades with macro risk sentiment. Mexico is the world’s top primary-silver producer, and large, high-grade mines like Juanicipio can influence regional concentrate flows and smelter terms. The addition of MAG’s stake strengthens Pan American’s exposure to Mexico’s silver belt at a time when new primary-silver projects remain limited.
