VANCOUVER, Dec. 27, 2016 /PRNewswire/ - Pan American
Silver Corp. (NASDAQ: PAAS) (TSX: PAA) ("Pan American" or the
"Company") has acquired ownership and control of an additional
10,000,000 common shares of Maverix Metals Inc. (TSXV: MMX)
("Maverix") through the exercise of 10,000,000 previously acquired
common share purchase warrants with an exercise price of
US$0.546 per common share (the
"Common Shares") on December 23,
2016, for gross proceeds to Maverix of US$5,460,000 (the "Warrant Exercise"). Pan
American has also acquired ownership and control of an additional
6,500,000 Maverix common share purchase warrants with an exercise
price of US$1.204 per common share of
Maverix, such warrants expiring on July 8,
2021 ("Replacement Warrants"). The Warrant Exercise
and the issuance of the Replacement Warrants were carried out as
part of an early warrant exercise incentive arrangement with Pan
American in connection with a transaction between Maverix and Gold
Fields Netherlands Services BV and certain of its affiliates, which
closed on December 23, 2016.
The Company continues to hold 10,000,000 previously acquired common
share purchase warrants exercisable for US$0.78 per common share expiring in July 2021 ("Existing Warrants").
Immediately following the Warrant Exercise and issuance of the
Replacement Warrants, Pan American directly owned 52,850,000 Common
Shares and 16,500,000 Existing Warrants and Replacement Warrants,
representing approximately forty (40%) of the total number of the
issued and outstanding common shares of Maverix on a non-diluted
basis, and approximately forty-three percent (43%) of the issued
and outstanding shares on a fully-diluted basis.
Pan American had previously entered into a shareholder agreement
(the "Shareholder Agreement") with Maverix, pursuant to which Pan
American is entitled to: (i) appoint up to two nominees for
election to the Board of Directors of Maverix, depending on Pan
American's shareholdings of Maverix; (ii) certain pre-emptive
rights in respect of equity financings of Maverix, including
certain anti-dilution rights; and (iii) certain qualification
rights in respect of Pan American's shareholding. Under the
Shareholder Agreement, Pan American's shareholdings in Maverix are
subject to certain restrictions, including a two year hold period
until July 8, 2018, and following
that, certain rights of orderly disposition of its
shareholdings. The Company further agreed to provide Maverix
with an opportunity to make an offer to acquire any metal stream or
metal royalty transactions which Pan American contemplates granting
on certain of its properties.
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.
About Pan American Silver
Pan American Silver Corp. is
one of the largest primary silver producers in the world. We own
and operate seven mines in Mexico,
Peru, Argentina and Bolivia. Pan American also
owns several development projects in the USA, Mexico,
Peru and Argentina. Our 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 is headquartered in Vancouver, B.C. and our shares trade on NASDAQ
(PAAS) and the Toronto Stock Exchange (PAA).
For more information, visit: www.panamericansilver.com
SOURCE Pan American Silver Corp.