07:53 AM EDT, 09/05/2024 (MT Newswires) -- First Majestic Silver ( AG ) said Thursday it has agreed to acquire all of the issued and outstanding common shares of silver producer Gatos Silver ( GATO ) .

Under the terms of the acquisition, which the companies expect will close in early 2025, Gatos shareholders will receive 2.55 common shares of First Majestic for each common share of Gatos.

The deal implies a total offer value of $13.49 for each share of Gatos based on Wednesday's closing price of First Majestic's stock, and a total equity value for Gatos of approximately $970 million. When the deal is completed, Gatos shareholders will own approximately 38% of First Majestic shares.

Shares of Gatos Silver ( GATO ) were up more than 7% in recent premarket activity, while shares of First Majestic Silver ( AG ) were down over 5% recently.

Price: 5.02, Change: -0.27, Percent Change: -5.10