Pan American Silver Corp. has completed its previously announced acquisition of all of the shares of Yamana Gold, Inc., following the sale by Yamana of its Canadian assets, including certain subsidiaries and partnerships which hold Yamana’s interests in the Canadian Malartic mine, to Agnico Eagle Mines Ltd. (AEM).

“This acquisition is transformative for Pan American, significantly increasing the scale of our operations in Latin America where we have been operating for nearly three decades,” said Michael Steinmann, president and CEO of Pan American. “We expect a material increase in our production of silver and gold. The acquisition is firmly aligned with our strategy of creating value by pursuing attractive growth opportunities, improving operating margins, and extending mine life.”

The arrangement adds four producing mines to Pan American’s portfolio: the Jacobina mining complex in Brazil, the El Peñón and Minera Florida mines in Chile, and the Cerro Moro mine in Argentina. It also adds the MARA development project in Argentina.

Pan American plans to provide a 2023 operating outlook inclusive of the Latin American assets acquired through the Arrangement, as well as a consolidated forecast for annual general and administrative, exploration and project development costs, in the mid-second quarter of 2023.

Upon closing, existing Pan American shareholders own approximately 58% of the Pan American Shares and former Yamana Shareholders own approximately 42% of the Pan American Shares.

With the completion of the arrangement, AEM now owns 100% of the Canadian Malartic mine, 100% of the Wasamac project located in the Abitibi region of Quebec, and several other exploration properties located in Ontario and Manitoba. Over the last 18 months, the company has solidified its presence in the Abitibi gold belt, a region of low political risk and high geological potential, and where it has a strong competitive advantage from having operated there for more than 50 years.

AEM’s production in the Abitibi gold belt is forecast to be approximately 1.9 – 2.1 million oz of gold per year through 2025. In addition, the company has the unique ability to monetize future additional mill capacity at the Canadian Malartic mine, given its extensive operations and strategic land position in the region.

The company’s 2023 production and costs guidance, which assumed 50% ownership of Canadian Malartic for the first three months of 2023 and 100% ownership for the last nine months of the year, is in line with the actual completion date of the arrangement.