Gatos Silver stockholders approved the merger with First Majestic Silver, exchanging shares at a specified ratio.
Quiver AI Summary
Gatos Silver, Inc. has announced that its stockholders have voted to adopt the proposal for merging with First Majestic Silver Corp., with approximately 71.3% of outstanding shares approving the merger resolution at a special stockholders meeting. Additionally, First Majestic shareholders approved the issuance of up to 190 million common shares associated with the merger. Gatos Silver stockholders will receive 2.55 First Majestic shares for every Gatos Silver share held, with any fractional shares compensated in cash. The merger is expected to close before market open on January 16, 2025, pending customary conditions. Gatos Silver is focused on silver exploration and operates the Cerro Los Gatos mine in Mexico.
Potential Positives
- Gatos Silver stockholders overwhelmingly approved the merger proposal, with approximately 71.3% voting in favor, indicating strong support for the strategic decision.
- The merger with First Majestic Silver is set to provide Gatos Silver stockholders with 2.55 shares of First Majestic for each Gatos Silver share, potentially enhancing shareholder value.
- The completion of the merger is expected to close shortly, on January 16, 2025, indicating a prompt realization of the merger benefits for both companies.
Potential Negatives
- Gatos Silver stockholders had to approve the merger, indicating potential reluctance or lack of confidence among investors given that 28.7% of votes were against the resolution.
- The press release contains extensive forward-looking statements, which may imply uncertainty about the merger's success and the future performance of the combined companies.
FAQ
What was approved by Gatos Silver stockholders?
Gatos Silver stockholders voted to adopt the merger proposal with First Majestic Silver Corp. during a special meeting.
How many Gatos Silver Shares were voted in favor of the merger?
Approximately 71.3% of the outstanding Gatos Silver Shares were voted in favor of the Merger Resolution.
What will Gatos Silver stockholders receive after the merger?
Stockholders will receive 2.55 First Majestic Shares for each Gatos Silver Share held, with fractional shares paid in cash.
When is the expected closing date for the merger?
The closing of the transaction is expected to occur prior to market open on January 16, 2025.
What is Gatos Silver known for?
Gatos Silver is known for its exploration, development, and production of silver, particularly at the Cerro Los Gatos mine in Mexico.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$GATO Hedge Fund Activity
We have seen 64 institutional investors add shares of $GATO stock to their portfolio, and 37 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- CONDIRE MANAGEMENT, LP removed 2,885,139 shares (-53.9%) from their portfolio in Q3 2024
- ALPINE ASSOCIATES MANAGEMENT INC. added 1,327,472 shares (+inf%) to their portfolio in Q3 2024
- QUBE RESEARCH & TECHNOLOGIES LTD added 1,228,409 shares (+683.5%) to their portfolio in Q3 2024
- MACKENZIE FINANCIAL CORP removed 1,176,972 shares (-88.6%) from their portfolio in Q3 2024
- MAGNETAR FINANCIAL LLC added 950,648 shares (+inf%) to their portfolio in Q3 2024
- FMR LLC removed 858,392 shares (-50.3%) from their portfolio in Q3 2024
- AQR ARBITRAGE LLC added 713,285 shares (+inf%) to their portfolio in Q3 2024
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
VANCOUVER, British Columbia, Jan. 14, 2025 (GLOBE NEWSWIRE) -- Gatos Silver, Inc. (NYSE:GATO) (TSX:GATO) (“Gatos Silver” or the “Company”) today announced that Gatos Silver’s stockholders have voted to adopt the proposal related to the previously announced merger agreement between First Majestic Silver Corp. (“First Majestic”) and Gatos Silver (the “Merger Resolution”). The vote was held at Gatos Silver’s special stockholders meeting earlier today.
The Merger Resolution was required to be approved by Gatos Silver stockholders representing a majority of the outstanding shares of common stock of Gatos Silver (“Gatos Silver Shares”). Approximately 71.3% of the outstanding Gatos Silver Shares were voted in favor of the Merger Resolution. The final voting results will be reported on a Form 8-K filed with the Securities and Exchange Commission.
In addition to the approval by Gatos Silver stockholders, First Majestic shareholders approved the issuance of up to 190,000,000 common shares of First Majestic (“First Majestic Shares”) in connection with the Merger Agreement at its special meeting today. Upon the consummation of the merger, Gatos Silver stockholders will receive 2.55 First Majestic Shares for each Gatos Silver Share held, with any fractional shares to be paid in cash, without interest.
The closing of the transaction is expected to occur prior to market open on January 16, 2025, subject to the satisfaction or waiver of the remaining customary closing conditions.
About Gatos Silver
Gatos Silver is a silver dominant exploration, development and production company that discovered a new silver and zinc-rich mineral district in southern Chihuahua State, Mexico. As a 70% owner of the Los Gatos Joint Venture (“LGJV”), the Company is primarily focused on operating the Cerro Los Gatos mine and on growth and development of the Los Gatos district. The LGJV includes approximately 103,000 hectares of mineral rights, representing a highly prospective and under-explored district with numerous silver-zinc-lead epithermal mineralized zones identified as priority targets.
Investors and Media Contact
André van Niekerk
Chief Financial Officer
investors@gatossilver.com
(604) 424 0984
Forward-Looking Statements
This press release contains statements that constitute “forward looking information” and “forward-looking statements” within the meaning of U.S. and Canadian securities laws. All statements other than statements of historical facts contained in this press release, including statements regarding the completion of the merger with First Majestic and the timing thereof are forward-looking statements. Forward-looking statements are based on management’s beliefs and assumptions and on information currently available to management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements, and such other risks and uncertainties described in our filings with the U.S. Securities and Exchange Commission and Canadian securities commissions. Gatos Silver expressly disclaims any obligation or undertaking to update the forward-looking statements contained in this press release to reflect any change in its expectations or any change in events, conditions, or circumstances on which such statements are based unless required to do so by applicable law. No assurance can be given that such future results will be achieved. Forward-looking statements speak only as of the date of this press release.++
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