Pan American Silver Corp. · TSX:PAAS
Pan American Silver — Merger or Acquisition (October 2009)
22 slides from Pan American Silver's merger presentation, Oct 14, 2009
Slide 1: Friendly Offer for Aquiline Resources Inc.
Filed by Pan American Silver Corp. pursuant to Rule 425 under the Securities Act of 1933 Commission file number: 000-13727 Subject Company: Aquiline Resources Inc. Commission file number: N/A Pan American Silver Corp.’s Friendly Offer for Aquiline Resources Inc. “The Premier Silver Mining Company” O
Slide 2: Cautionary Note Regarding Forward Looking Statements
Cautionary Note Regarding Forward Looking Statements Certain of the statements and information in this investor presentation constitute “forward looking statements” within the meaning of the United States private securities litigation reform act of 1995 and “forward looking information” within the m
Slide 3: Cautionary Statements
Cautionary Statements CAUTIONARY NOTE TO ALL INVESTORS CONCERNING ECONOMIC ASSESSMENTS THAT INCLUDE INFERRED RESOURCES • Mineral resources that are not mineral reserves have no demonstrated economic viability. The preliminary economic assessment of the Navidad project is preliminary in nature and in
Slide 4: Transaction Highlights
Transaction Highlights Pan American Silver Corp. (“PAA”) will make a friendly offer to acquire Aquiline Resources Inc. (“AQI”) • PAA will offer 0.2495 (“Exchange Ratio”) of a PAA common share plus 0.1 of a PAA common share purchase warrant for each AQI common share (“Share Offer”) • Consideration va
Slide 5: Transaction Highlights (Cont'd)
Transaction Highlights (Cont’d) PAA will make separate offers to purchase AQI warrants and the convertible debenture • PAA will offer replacement securities with similar terms, adjusted by the 0.2495 exchange ratio The Board of Directors of AQI has unanimously determined that the PAA Share Offer is
Slide 6: Transaction - Other Terms
Transaction - - Other Terms AQI directors and senior officers have agreed to lock-ups and will tender into PAA’s Share Offer. Break fee of C$18 million PAA has a five business day right to match superior offers Minimum tender condition of 66 2/3% under Share Offer • Share Offer not contingent on suc
Slide 7: Pan American + Aquiline - The Assets
Pan American + Aquiline - The Assets Note: Bold Italics represent producing properties 7
Slide 8: Pan American + Aquiline - The Rationale
Pan American + Aquiline - The Rationale PAA - - The Premier Silver Mining Company • Largest North American-listed silver producer as ranked by production (8 operating mines) • Industry-leading mine construction and operating expertise (have built or expanded 5 new silver mines in last 6 years) • Sup
Slide 9: Pan American + Aquiline - The Rationale
Pan American + Aquiline - The Rationale Addition of world-class silver development project to PAA’s portfolio • Navidad is one of world’s largest undeveloped silver properties • Total measured & indicated resources (inclusive of reserves) increase to approx. 0.9 billion oz of silver plus another 0.2
Slide 10: Pan American + Aquiline - Silver Resources
Pan American + Aquiline - Silver Resources Silver Reserves and Resources (mm oz) (1) Pan American Silver Reserves and Resources reported as of 31-Dec-2008 as per 2008 AIF. See appendix for full details. (2) Navidad based on June 2009 NI 43-101 Technical Report prepared by Snowden. Calcatreu NI 43-10
Slide 11: Transaction is Transformational to Growth Profile
Pan American + Aquiline Transaction is Transformational to Growth Profile Silver Production (mm oz) (1) Pan American Silver production based on historical results and 2009E and 2010E are based on median public guidance from investor presentation at the Merrill Lynch Mining Conference (dated 10-Sep-2
Slide 12: Value for Aquiline Shareholders
Value for Aquiline Shareholders Significant premium and enhanced liquidity • Offer values AQI shares at C$7.47 • 0.2495 of a PAA common share valued at C$6.66 • 0.1 of a PAA common share purchase warrant valued at C$0.81 • Offer represents a 37% premium to AQI’s most recent closing price on the TSX
Slide 13: Value for Aquiline Shareholders (Cont'd)
Value for Aquiline Shareholders (Cont’d) Exposure to PAA’s attractive and diverse portfolio of assets • 8 operating mines in Mexico, Peru, Bolivia and Argentina • Track record of extending mine life and successful project development • Ongoing participation in value creation associated with successf
Slide 14: Value for Pan American Shareholders
Value for Pan American Shareholders Accretive to NAV per share and resources per share Expected to be accretive to CFPS once Navidad is in production PAA adds another world-class project to its development pipeline 208% overall increase in silver M&I resources (including P&P reserves) 99% overall in
Slide 15: Navidad - Loma de La Plata Zone PEA Results
Navidad (1) Loma de La Plata Zone - Estimated Preliminary Economic Assessment Results Near-surface, high-grade silver zone suitable for open pit mining Silver resources(2) • Indicated - 29.1 M tonnes @ average 169 g/t (158M contained oz) • Inferred - 1.3 M tonnes @ average 76 g/t (3M contained oz) P
Slide 16: Navidad (Cont'd) - Barite Hill and Valle Esperanza
Navidad (Cont’d) (1) Barite Hill Zone Near surface deposit amenable to open pit mining methods Indicated resource(2) - 7.7 M tonnes@ average 153 g/t (38 M contained oz) Metallurgical test work indicates high-silver grade bulk flotation concentrate can be produced Valle Esperanza Zone Near surface de
Slide 17: Political Perspective
Political Perspective PAA has recently developed the Manantial Espejo mine in Argentina PAA was awarded - “Mining Company of the Year in Argentina” on the strength of its community, employee and government relations as well as its exemplary safety record PAA is well aware of the current mining laws
Slide 18: PAA + AQI - A Win/Win Combination
PAA + AQI - A Win/Win Combination For AQI Shareholders • Significant upfront premium to current price • Opportunity to participate in PAA’s future upside • Development and operation of Navidad by PAA’s experienced team • Immediate access to PAA market liquidity For PAA Shareholders • PAA will incorp
Slide 19: Endnotes and Cautionary Statements
Endnotes and Cautionary Statements • For full transaction terms and conditions, refer to Pan American Silver’s Take-over Bid Circular, which will be filed shortly and available at www.sedar.com and www.panamericansilver.com • Michael Steinmann, P.Geo. Executive Vice President, Geology and Exploratio
Slide 20: Appendix: Aquiline Resources
Appendix: Aquiline Resources (1) Navidad based on June 2009 NI 43-101 Technical Report prepared by Snowden. (2) Calcatreu NI 43-101 resources based on results of 22-Apr-2008 Mineral Resource Update prepared by Micon International Limited. (3) Pico Machay resources presented on a 100% basis as per pr
Slide 21: Appendix: Pan American Silver Resources
Appendix: Pan American Silver Resources Note: Pan American Silver Corp. reserves and resources as of 31-Dec-2008 as per 2008 AIF 21
Slide 22: Slide 22
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