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| Juanicipio mine |
Pan American Silver has finalized regulatory approval to complete its $2.1 billion acquisition of MAG Silver. This acquisition enhances Pan American’s control over one of Mexico’s premier silver assets, the high-grade Juanicipio mine in Zacatecas. The Federal Economic Competition Commission (COFECE) of Mexico granted approval, enabling the transaction to close on September 4.
The acquisition transfers MAG’s 44% stake in Juanicipio, operated by Fresnillo, to Pan American. Additionally, Pan American gains two early-stage projects: Deer Trail in Utah and Larder in Ontario. These assets align with Pan American’s strategy to expand its silver mining footprint globally. Meanwhile, CEO Michael Steinmann highlighted that MAG Silver’s portfolio represents some of the best silver resources worldwide.
Juanicipio produced 4.5 million ounces of silver in Q1 2025, accompanied by gold, lead, and zinc by-products. The mine’s all-in sustaining cost stands at $10.64 per ounce of silver equivalent. For the full year 2025, production is forecasted between 14.7 and 16.7 million ounces of silver. This acquisition comes amid a surge in silver prices, which have risen more than 30% this year, fueling consolidation in the silver mining sector.
Other notable deals reflecting this trend include First Majestic Silver’s $970 million purchase of Gatos Silver, Coeur Mining’s $1.7 billion acquisition of Silvercrest, and Endeavour Silver’s $145 million buyout of Minera Kolpa in Peru. Pan American remains a leading silver producer, operating mines across North and South America, including Canada, Mexico, Peru, Brazil, Bolivia, Chile, Argentina, and holding the Escobal mine in Guatemala on care and maintenance.
ScrapInsight Commentary
Pan American’s $2.1 billion acquisition of MAG Silver strengthens its position in the global silver market, particularly through the high-grade Juanicipio asset. As silver prices rally, this consolidation may drive operational efficiencies and increase output. Regulatory approval signals strong governmental support, while the deal underscores growing investment interest in high-potential silver projects aligned with circular economy principles.
