TORONTO - Independent (LON:IOG) proxy advisory firms ISS and Glass Lewis (JO:LEWJ) have recommended Americas Gold and Silver Corporation (TSX: USA) (NYSE American: USAS) shareholders to vote in favor of the proposed acquisition of the remaining 40% interest in the Galena Complex, the company announced. The endorsement from these firms is a significant step for the mining company, which currently manages a 60% stake in the Idaho-based project. The company, currently valued at $2.06 billion and trading near its 52-week high of $7.49, has shown strong momentum with a 26.2% year-to-date return.According to InvestingPro data, Americas Gold and Silver appears attractively valued with a P/E ratio of 5.87, suggesting potential upside for investors interested in this acquisition.
The special meeting of shareholders to decide on the acquisition is scheduled for December 17, 2024. With ISS and Glass Lewis being prominent advisors that guide institutional shareholders on proxy voting, their support could influence the outcome significantly. Americas has urged its shareholders to vote ahead of the December 13 proxy cutoff to ensure their voices are counted.
Shareholders have been directed to review the Meeting Materials, which include the Notice of Meeting and Information Circular dated November 7, 2024, for details on the acquisition and voting instructions. These documents are available on the SEDAR+ platform or through the company’s proxy solicitor, Carson Proxy Advisors.
Americas Gold and Silver Corporation is a growing precious metals mining company with assets across North America, including the Cosalá Operations in Mexico and the Galena Complex in the United States. The company is also re-evaluating the Relief Canyon mine in Nevada and owns the San Felipe development project in Mexico. The company has demonstrated solid operational performance with 10.65% revenue growth in the last twelve months and offers an attractive dividend yield of 9.92%.
This acquisition could consolidate Americas’ ownership of the Galena Complex, potentially enhancing its portfolio of mining operations. The company has recommended that shareholders affected by the Canada Post labor strike access the Meeting Materials electronically and consult their brokers or financial intermediaries for voting instructions.
The information for this report is based on a press release statement.
In other recent news, Americas Gold and Silver Corporation announced its plans to fully acquire the remaining 40% interest in the Galena Complex in Idaho, one of North America's largest high-grade, underground silver mines. The transaction involves a binding agreement with affiliates of Eric Sprott and Paul Andre Huet, who will assume the roles of Chairman and CEO of the company respectively, post-acquisition. The company also plans to raise approximately C$40 million through a private placement financing deal.
This acquisition aims to optimize and potentially expand operations by utilizing the existing infrastructure at the Galena Complex. The financing proceeds are intended for debt restructuring, covering transaction expenses, and advancing the Galena mining operations. The terms of the agreement include a payment of 170 million Americas common shares and US$10 million in cash to Sprott's owners, along with monthly silver deliveries for 36 months starting January 2026.
These recent developments require approval from Americas' shareholders and regulatory bodies, including the Toronto Stock Exchange and NYSE American Exchange. The acquisition is anticipated to close before the end of the year, bringing new members from Karora's senior executive team and Board of Directors into Americas' leadership and governance.
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