Silver producer Fresnillo PLC said it informed MAG Silver Corp it plans to make a US$4.54 per share cash offer for the remaining shares it does not already own in the group.
Fresnillo and its affiliates currently own approximately 19.8 percent of MAG Silver’s common shares. The price of the offer - to be made via Fresnillo unit Fresbal Investments Ltd - represents a 12.38 percent premium to the 20 day volume weighted average trading price of MAG Silver's common shares.
In accordance with Canadian law, a formal independent valuation is required to be obtained by MAG Silver prior to mailing the offer to MAG Silver shareholders. Fresbal does not intend to amend the offer price based on future discussions with MAG Silver or based upon the results of the valuation.