REG - Fresnillo Plc - Sale of MAG Silver shares & Juanicipio partnership

FresnilloAnnouncement

16/05/2025 07:00

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RNS Number : 9227I  Fresnillo PLC  16 May 2025

 
 
  Fresnillo plc

21 Upper Brook Street

London W1K 7PY

United Kingdom

www.fresnilloplc.com (http://www.fresnilloplc.com)

 

 

16 May 2025

 

 

Statement re sale of MAG Silver shares and Juanicipio partnership

 

 

Fresnillo plc ("Fresnillo" or "the Company") announces that following the
recently published agreement to acquire MAG Silver Corp ("MAG Silver") by Pan
American Silver Corp ("Pan American") (the "Agreement"), Fresnillo has
carefully considered its position in MAG Silver.

 

Fresnillo originally acquired its stake in MAG Silver as a strategic
investment in a single-asset company to support the strong partnership at
Juanicipio, one of the world's premier silver mines where Fresnillo is the
operator and majority owner. Under the terms of the Agreement, subject to
approval of the transaction, Fresnillo's shareholding of over 9% of MAG Silver
would convert into a shareholding of less than 1% of Pan American, a
diversified, multi-asset precious metals mining company. This conversion of
shares does not align with Fresnillo's strategic investment objectives nor
with the interests of its shareholders and therefore Fresnillo has sold the
majority of its MAG Silver shares.

 

Fresnillo is very confident in the value and performance of the Juanicipio
mine, which continues to deliver excellent operational and financial results
and remains one of the key assets in the Fresnillo portfolio. The sale of its
MAG Silver shares reflects a disciplined approach to the Company's investment
strategy, focusing on its core objectives.

 

In the event the proposed transaction completes, Fresnillo welcomes the
opportunity to build a collaborative relationship with Pan American, an
experienced precious metals miner with a strong track record, complementing
Fresnillo's role as operator and majority owner of Juanicipio. The terms of
the Juanicipio partnership, including all governance and legal matters, remain
unchanged.

 

The proceeds from the sale of shares will be allocated in a disciplined manner
in line with Fresnillo's capital allocation priorities, including investment
in its growth pipeline and maintaining a strong balance sheet.

 

Ends

 

For further information, please visit our website www.fresnilloplc.com
(http://www.fresnilloplc.com) or contact:

 FRESNILLO PLC                                                            Tel: +44 (0)20 7399 2470

 London Office

 Gabriela Mayor, Head of Investor Relations

 Mark Mochalski
 Mexico City Office                                                       Tel: +52 55 52 79 3206

 Ana Belem Zárate

 SODALI & CO                                                              Tel: +44 (0)7793 858 211

 Peter Ogden

 

ABOUT FRESNILLO PLC

Fresnillo plc is the world's largest primary silver producer and Mexico's
largest gold producer, listed on the London and Mexican Stock Exchanges under
the symbol FRES.

Fresnillo plc has eight operating mines, all of them in Mexico - Fresnillo,
Saucito, Juanicipio, Ciénega, Herradura, Soledad-Dipolos(1), Noche Buena and
San Julián (Veins and Disseminated Ore Body) and four advanced exploration
projects - Orisyvo, Rodeo, Guanajuato and Tajitos as well as a number of other
long term exploration prospects.

Fresnillo plc has mining concessions and exploration projects in Mexico, Peru
and Chile.

Fresnillo plc's goal is to maintain the Group's position as the world's
largest primary silver company and Mexico's largest gold producer.

(1) Operations at Soledad-Dipolos are currently suspended.

 

FORWARD-LOOKING STATEMENTS

Information contained in this announcement may include 'forward-looking
statements'. All statements other than statements of historical facts included
herein, including, without limitation, those regarding the Fresnillo Group's
intentions, beliefs or current expectations concerning, amongst other things,
the Fresnillo Group's results of operations, financial position, liquidity,
prospects, growth, strategies and the silver and gold industries are
forward-looking statements. Such forward-looking statements involve risk and
uncertainty because they relate to future events and circumstances.
Forward-looking statements are not guarantees of future performance and the
actual results of the Fresnillo Group's operations, financial position and
liquidity, and the development of the markets and the industry in which the
Fresnillo Group operates, may differ materially from those described in, or
suggested by, the forward-looking statements contained in this document. In
addition, even if the results of operations, financial position and liquidity,
and the development of the markets and the industry in which the Fresnillo
Group operates are consistent with the forward-looking statements contained in
this document, those results or developments may not be indicative of results
or developments in subsequent periods. A number of factors could cause results
and developments to differ materially from those expressed or implied by the
forward-looking statements including, without limitation, general economic and
business conditions, industry trends, competition, commodity prices, changes
in regulation, currency fluctuations (including the US dollar and Mexican Peso
exchanges rates), the Fresnillo Group's ability to recover its reserves or
develop new reserves, including its ability to convert its resources into
reserves and its mineral potential into resources or reserves, changes in its
business strategy and political and economic uncertainty.

LEI: 549300JXWH1UV5J0XV81

 

 

 

 

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