First Majestic Silver to buy Primero Mining in $320M deal

|About: First Majestic Silver Corp. (AG)|By:, SA News Editor

First Majestic Silver (NYSE:AG) agrees to acquire Primero Mining (NYSE:PPP) in a cash and stock deal valued at $320M, including debt.

The acquisition implies consideration of C$0.30/share, based on the 20-day volume weighted average price of AG shares on the Toronto Stock Exchange through Jan. 10, representing a 200% premium to the weighted average price of Primero common shares on the TSX over the period.

Primero's key asset is its 100%-owned San Dimas silver-gold mine in Mexico; related to the deal, Wheaton Precious Metals (NYSE:WPM) ends its existing San Dimas silver purchase agreement with Primero and enter into a new agreement with AG.