MAG Silver Soars 3.10% on Acquisition Approval

MAG Silver (MAG) shares surged 3.10% today, marking the third consecutive day of gains, with a cumulative increase of 5.38% over the past three days. The stock price reached its highest level since June 2021, with an intraday gain of 3.33%.

The strategy of buying MAG shares after they reach a recent high and selling them one week later delivered strong returns over the past five years. The strategy achieved a 109.08% return, vastly outperforming the benchmark, which remained at -100.00%. The excess return was 209.08%, indicating the strategy's ability to capitalize on price movements. With a maximum drawdown of 0.00% and a Sharpe ratio of 0.86, the strategy also showcased robust risk management, maintaining a steady upward trend with a CAGR of 34.32%.

MAG Silver Corp. shareholders have overwhelmingly approved the acquisition of the company by Pan American Silver Corp. at a special meeting held on July 10, 2025. The acquisition received 99.52% of the votes in favor, indicating strong support from shareholders. Under the terms of the arrangement, MAG shareholders can receive either $20.54 in cash per share or 0.755 Pan American shares plus nominal cash per MAG share. The total deal includes $500 million in cash, with the remainder paid in Pan American shares. The transaction is expected to close in the second half of 2025, pending final court approval and regulatory authorization. Following the acquisition, MAG shares will be delisted from the TSX and NYSE American. This move is part of Pan American's strategy to strengthen its precious metals portfolio and gain increased exposure to MAG's interest in the Juanicipio project.