First Majestic Announces Agreement to Acquire Gatos Silver

VANCOUVER, British Columbia, Sept. 5, 2024 (GLOBE NEWSWIRE) — First Majestic Silver Corp. (NYSE:AG) (TSX:AG) (FSE:FMV) (“First Majestic”) and Gatos Silver, Inc. (“Gatos”) (NYSE:GATO) (TSX:GATO) are pleased to announce that they have entered into a definitive merger agreement (the “Definitive Agreement”) pursuant to which First Majestic will acquire all of the issued and outstanding common shares of Gatos (the “Transaction”). Gatos is a silver-dominant producer with a 70% interest in the Los Gatos Joint Venture, which owns the producing Cerro Los Gatos underground silver mine in Chihuahua, Mexico.

Under the terms of the Definitive Agreement, Gatos shareholders will receive 2,550 shares of First Majestic common stock for each share of Gatos common stock held. The consideration implies an aggregate offer value of US$13.49 per share of Gatos common stock based on the closing price of First Majestic common stock on the New York Stock Exchange (the “NYSE”) on September 4, 2024, and represents a 16% premium based on each company’s closing prices and the NYSE 20-day volume weighted average prices (“VWAP”) ending on September 4, 2024. The proposed Transaction implies a total equity value for Gatos of approximately US$970 million. Upon completion of the Transaction, existing Gatos shareholders will own approximately 38% of First Majestic common stock on a fully diluted basis.