First Majestic Silver Corp. and Gatos Silver, Inc. announced they have entered into a definitive merger agreement pursuant to which First Majestic will acquire all of the issued and outstanding common shares of Gatos, in a transaction valued at approximately $1.31 billion (US$970 million). First Majestic presently owns and operates the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine, and the La Encantada Silver Mine, all located in Mexico Gatos is a silver dominant producer with a 70 percent interest in the Los Gatos Joint Venture, which owns the producing Cerro Los Gatos underground silver mine in Chihuahua, Mexico.

Bennett Jones acted as Canadian legal counsel to First Majestic with a team that included James Beeby, Lisa Stewart, Jeff Taylor, Claire Lingley, Madison Sutherland (M&A), Anu Nijhawan, Marshall Haughey (Tax) and Simon Grant (Financial Services).

National Bank Financial acted as exclusive financial advisor to First Majestic and TD Securities provided a fairness opinion to the board of directors. Dorsey & Whitney LLP acted as US legal advisors to First Majestic.

BofA Securities acted as exclusive financial advisor to Gatos. GenCap Mining Advisory Ltd. provided a fairness opinion to the Special Committee of the Gatos board of directors. White & Case LLP and McCarthy Tetrault LLP acted as legal advisors to Gatos.

The deal is expected to close in early 2025, subject to the satisfaction of customary closing conditions, including approvals of the shareholders of First Majestic and Gatos, clearance under Mexican anti-trust laws, and approval of the listing of the First Majestic common shares.