Pan American Silver Corp. (TSX:PAAS) is on course to greatly increase its market value and its reputation in the eyes of shareholders and possible investors. Its most recent announcement should help the company gain more ground in Canada’s stagnant mining sector.
In a recent press release, Pan American Silver announced that shareholders were more than willing to approve the resolution to increase the number of authorized shares of the company. The shareholders also agreed to issue up to 72,533,152 Pan American Silver shares in connection with the company’s bid to acquire all the issued and outstanding shares of Tahoe Resources, Inc.
Regarding the authorized capital resolution, those who voted for it are at 83,233,358 which amounts to 98.44 percent of the shareholders. On the other hand, the votes supporting the share issuance resolution bid are at 83,602,370 or 98.88 percent. The company’s board is very pleased with the results of the voting phase.
The recent update prompted Canaccord Genuity to restate their buy rating on Pan American Silver shares. The firm has placed a US$25 price objective on the company’s stock. The company has had several buy rating restates in the past months. It could begin to move more positively soon because of the announcement.
Perhaps the better news coming from the mining giant today is its nearing acquisition of Tahoe. The arrangement between the two brands is still subject to approval by the Supreme Court of British Columbia but regardless, it is expected to be completed by Feb. 26 this year.
Pan American Silver’s plans on re-opening Tahoe’s Escobal silver mine
Pan American Silver President and CEO Michael Steinmann said that “we are very pleased to see strong shareholder support for our acquisition of Tahoe. This is a logical combination that provides investors with exposure to a geographically diversified portfolio of some of the world’s best silver mining assets.”
Pan American Silver offered US$3.40 per share to Tahoe last November. The offer was nearly 35 percent premium compared to Tahoe’s average share price. The company believes that it can help Tahoe re-open the Escobal silver mine which is also the world’s second largest of its kind. Issues with the surrounding Xinca indigenous population forced Tahoe to shut down the mine in 2017.
Steinmann said that negotiations should be done with the Xinca so that all their needs and demands are met. He adds that the process to re-opening the huge mine is still in the early process, and they are in no way rushing it.
The recent announcements from Pan American Silver further prove the company’s dedication to improving itself and market value. Needless to say, the company’s shareholders are excited for what is to come to it in the next few months. At a time when Canada’s mining industry is starting to compete more heavily with the U.S., acquisitions are going to play a major role in a company’s success.