NEWS RELEASE: Pan American Silver and Tahoe Resources Create the World’s Premier Silver Mining Company (November 14, 2018)

https://www.panamericansilver.com/

VANCOUVER, Nov. 14, 2018 /CNW/ – Pan American Silver Corp. (NASDAQ: PAAS) (TSX: PAAS) (“Pan American”) or the “Company”) and Tahoe Resources Inc. (NYSE:TAHO) (TSX:THO) (“Tahoe”) today announced that they have entered into a definitive agreement for Pan American to acquire all of the outstanding shares of Tahoe pursuant to a plan of arrangement (the “Transaction”), creating the world’s premier silver mining company.

Shareholders of Tahoe will be entitled to elect to receive common shares of Pan American and/or cash in exchange for their shares of Tahoe. Additional consideration will be in the form of the right to a contingent payment in common shares of Pan American tied to the restart of the Escobal mine in Guatemala.

Highlights of the combined entity:

  • World-class primary silver asset portfolio, diversified across the Americas.
  • World’s largest silver reserve base and silver measured and indicated resource base.
  • Largest publicly-traded silver mining company by free float.
  • Superior operating metrics with industry-leading production, growth and margins.
  • Robust growth profile with the restart of the Escobal silver mine following completion of the consultation process and community engagement. Escobal is a well built, turn-key operation with minimal capital outlay and development risk. The mine produced 21Moz of Ag at US$8.63/oz Ag AISC during its last four quarters of undisturbed production.
  • Additional upside through expansion of the La Colorada mine following the recent exploration discovery and potential development of Navidad, one of the world’s largest undeveloped primary silver deposits.
  • Gold assets well positioned to deliver low-cost production following recent capital investments.
  • Management team with a 25-year proven track record of responsibly building and operating mines in Latin America.
  • Strong financial position and access to capital, enabling the Company to advance key growth projects.
  • Potential non-core asset sales and operating synergies to provide further strengthening of the balance sheet.

Transaction Terms

Pursuant to the Arrangement, Tahoe shareholders may elect to receive US$3.40 in cash or 0.2403 Pan American shares for each Tahoe share, subject in each case to pro-ration based on a maximum cash consideration of US$275 million and a maximum number of Pan American shares issued of 56.0 million, totaling US$1,067 million (the “Base Purchase Price”). The Base Purchase Price represents a premium of 34.9% to Tahoe’s volume weighted average price (“VWAP”) for the 20-day period ending on November 13, 2018.

For the rest of this news release: https://www.panamericansilver.com/investors/news-releases/detail/65/2018-11-14-pan-american-silver-and-tahoe-resources-create-the-worlds-premier-silver-mining-company

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