Fresnillo PLC (LSE:FRES) has sold most of its shares in MAG Silver following the company’s takeover by Pan American Silver, saying the investment no longer fits its strategy.
The Mexico-focused miner’s 9% holding in MAG would have been reduced to less than 1% under the terms of the all-share acquisition, prompting the exit. The proceeds will be used to support Fresnillo’s capital plans.
Despite stepping back from MAG Silver, Fresnillo said it remained fully committed to the Juanicipio mine in Mexico, which it continues to operate and manage.
The company confirmed that existing legal and governance arrangements at the site will not be affected by the transaction.
Fresnillo, which is listed in London, runs eight mines in Mexico and is developing exploration projects in Peru and Chile.
The shares opened flat at 1,010.89p.