LONDON: Fresnillo plc has sold the majority of its shares in MAG Silver Corp., citing strategic investment objectives, following Pan American Silver Corp.’s recently announced acquisition agreement with MAG Silver.
Fresnillo, a major precious metals producer and operator of the Juanicipio mine, initially held a stake exceeding 9% in MAG Silver as part of its investment in the single-asset company.
Under the terms of the proposed acquisition, pending approval, Fresnillo’s stake in MAG Silver would convert to less than 1% in Pan American, a diversified mining firm—a shift that does not align with the company’s investment priorities, prompting the sale.
The company reaffirmed confidence in Juanicipio, one of the world’s premier silver mines, highlighting its strong operational and financial performance. Fresnillo emphasized that the sale reflects a disciplined investment approach, ensuring alignment with shareholder interests.
Should the acquisition proceed, Fresnillo expressed willingness to collaborate with Pan American, recognizing its track record in the mining sector. The existing governance and legal framework of the Juanicipio partnership will remain unchanged, the company said.
Proceeds from the share sale will be directed toward Fresnillo’s growth pipeline and maintaining a strong balance sheet, in line with its capital allocation strategy.