Pan American Silver (PAA-T) and Corner Bay Silver (BAY-T) have amended the terms of their previously announced merger proposal.
Under the new deal, each Corner Bay share will be exchanged for 0.385 of a Pan Am share, plus 0.1925 of a Pan Am share purchase warrant. One warrant allows the holder to buy one Pan Am share for $12 for five years.
The old deal called for each Corner Bay share to be exchanged for 0.54 of a Pan Am share, plus one-quarter of a share in a newly formed exploration company managed by Corner Bay’s Peter Mordaunt.
The new plan nixes the creation and distribution of shares in the new exploration company.
To complete the acquisition Pan American will issue about 8 million new shares and about 4 million share purchase warrants.
The deal is subject to regulatory and shareholder approval.
Pan Am’s interest in Corner Bay lies in the company’s 117-million-oz. Alamo Dorado silver resource in northern Mexico. The project’s near-surface resource of 79.6 million tonnes runs 45.9 grams silver and 0.18 gram gold per tonne.
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