Tahoe Resources Inc.  (TAHO) soared nearly 45% Wednesday, Nov. 14, after Pan American Silver Corp.  (PAAS - Get Report) said it agreed to buy the Reno-based mining company for $1.07 billion in cash and stock.

Shares of the Vancouver-based Pan American Silver slipped nearly 11%.

The deal will create the largest publicly traded silver mining company by free float, Pan American said in a statement, and the world's largest silver reserve base and silver measured and indicated resource base. 

Tahoe shareholders may elect to receive $3.40 in cash or 0.2403 a Pan American share for each Tahoe share held, the company said.

Pan American said that Tahoe shareholders will receive contingent consideration in the form of contingent value rights that will be exchanged for 0.0497 Pan American shares for each Tahoe share, currently valued at $221 million, and payable upon first commercial shipment of concentrate following restart of operations at the Escobal mine in Guatemala.

Tahoe Resources said earlier this month that the Escobal mine could restart by December 2019.

The total consideration, including the base purchase price and the conditional payment, is $4.10 per share, Pan American said. 

The boards of both companies have approved the deal.