VANCOUVER, July 11,
2016 /PRNewswire/ - Pan American Silver Corp.
(NASDAQ: PAAS; TSX: PAA) ("Pan American" or the "Company"), and
Maverix Metals Inc. (formerly MacMillan Minerals Inc.) (TSXV: MMX)
("Maverix"), announced today that the Company and Maverix have
completed a statutory plan of arrangement (the "Arrangement") under
Section 192 of the Canada Business Corporations Act.
Pursuant to the Arrangement, the Company acquired
42,850,000 common shares of Maverix (the "Common Shares") for
consideration of CAD$52,823,048
(US$40,240,000), based on the Bank of
Canada noon exchange rate of
1.3127 on July 11, 2016, representing
payment by the Company of approximately CAD$1.23 per Common Share, and 20,000,000 common
share purchase warrants ("Warrants") for consideration of
CAD$2,625,400 (US$2,000,000), based on the Bank of Canada noon exchange rate of 1.3127 on
July 11, 2016, representing cash
consideration by the Company of approximately CAD$0.13 per Warrant. The Warrants are
exercisable for five years, with one-half exercisable at
CAD$0.70 (US$0.564) per share and the other half
exercisable for CAD$1.00 (US$0.78) per share. Immediately following the
Arrangement, Pan American directly owned 42,850,000 Common Shares
and 20,000,000 Warrants, representing approximately fifty four
percent (54%) of the total number of the issued and outstanding
common shares of Maverix on a non-diluted basis, and approximately
sixty three percent (63%) of the issued and outstanding shares on a
fully-dilued basis. The Company's acquisition was made for
investment purposes. The Company may, in the future, acquire
ownership and control over additional securities of Maverix for
investment purposes.
The Company relied on the arrangement exemption
from the prospectus requirements set out in section 2.11 of
National Instrument 45-106 – Prospectus Exemptions in
connection with the acquisition of the Common Shares and Warrants
under the Arrangement.
About Pan American
Pan American Silver's mission is to be the
world's pre-eminent silver producer, with a reputation for
excellence in discovery, engineering, innovation and sustainable
development. The Company has seven operating mines in Mexico, Peru,
Argentina and Bolivia. Pan
American also owns several development projects in the USA, Mexico,
Peru and Argentina. Pan American is located at 1500 -
625 Howe Street, Vancouver, British
Columbia, V6C 2T6.
SOURCE Pan American Silver Corp.