Pan American To Buy Aquiline Resources

VANCOUVER, British Columbia (AP) — Canadian miner Pan American Silver Corp. said Wednesday it has agreed to acquire rival Aquiline Resources Inc. in a deal valued at $608 million.

Aquiline's board said it supports the deal, which would give its shareholders own about 19 percent of the enlarged Pan American, which is based in Vancouver.

Pan American President and CEO Geoffrey Burns said Toronto-based Aquiline provides a perfect match with Pan American's core strength as a developer and operator of primary silver mines.

Pan American aims to become the world's largest and lowest cost primary silver mining company. It already has eight operating mines in Mexico, Peru, Argentina and Bolivia.

With the deal, Pan American will gain Aquiline's Argentinian Navidad project, which is thought to be one of the world's largest underdeveloped silver deposits, as well as its Calcatreu gold and silver deposit in Argentina and a gold deposit in Peru.

Under the deal, Pan American would offer 0.2495 of a Pan American common share plus 0.1 of warrant to buy Pan American common shares for each Aquiline share.