Fresnillo Sells Most of Its Stake in MAG Silver

Mexico-based silver company Fresnillo announced it has sold the majority of its stake in Canada-based junior mining company MAG Silver. Fresnillo stated this decision follows Pan American Silver's recent acquisition of MAG Silver, a development it considers misaligned with its own strategic objectives.

Fresnillo explained that its original acquisition of a stake in MAG Silver was intended to solidify their joint venture (JV) at the Juanicipio mine in Zacatecas, where Fresnillo held a 56% interest and MAG Silver held the remaining 44%. Fresnillo said this investment was in line with its objectives as MAG Silver was a single-asset investment. 

However, under the terms of the agreement signed between MAG Silver and Pan American Silver, MAG Silver's shares were convertible into Pan American Silver stock. As a result, Fresnillo's shareholding of over 9% in MAG Silver would convert into a stake of less than 1% in Pan American Silver, which Fresnillo considers a diversified mining company with multiple precious metals assets. "This share conversion is not aligned with Fresnillo's strategic investment objectives, nor with the interests of its shareholders," reads Fresnillo’s report to the Mexican Stock Exchange (BMV). 

On May 15, 2025, MBN reported the Pan American-MAG deal, valued at over US$2.1 billion. The transaction would result in MAG Silver shareholders owning over 14% of Pan American Silver shares. “Our acquisition brings into Pan American’s portfolio one of the best silver mines in the world. Furthermore, we see future growth opportunities through the significant exploration potential at Juanicipio as well as MAG’s Deer Trail and Larder properties. This strategic acquisition further solidifies Pan American as a leading Americas-focused silver producer,” said Michael Steinmann, President and CEO, Pan American Silver.

Juanicipio’s Importance for Fresnillo 

The divestment from MAG Silver does not impact Fresnillo’s involvement in the Juanicipio mine, which, according to the company, is its best-performing asset. The mine produced around 9.41Moz of silver in 2023, positioning it as Mexico’s fifth-largest silver mining unit, according to the CAMIMEX Annual Report 2024. “We have been fortunate to have successful joint ventures with other world-class companies, including Herradura, Nochebuena, and Soledad-Dipolos. Our joint venture with MAG Silver follows this philosophy. We reached an agreement through which, by investing a certain amount and exploring MAG Silver's concessions, we could earn a 56% stake. We achieved this and now Juanicipio stands as our highest-performing mine,” Octavio Alvídez, CEO, Fresnillo, explained to MBN.