Gatos Silver’s $150 Million Initial Public Offering

Davis Polk advised Gatos Silver, and Skadden, Arps, Slate, Meagher & Flom advised the underwriters on the deal.

Gatos Silver, Inc. (“Gatos Silver”) announced the pricing of its initial public offering of 21,430,000 shares of its common stock at a price of US$7.00 per share. Gatos Silver is expected to own 70% of a new silver and zinc mineral district (“Los Gatos District”) in Chihuahua state, Mexico, following the consummation of its IPO. The gross proceeds from the offering are expected to be approximately US$150 million, before deducting underwriting discounts and commissions and estimated offering expenses payable by Gatos Silver.

BMO Capital Markets, Goldman Sachs & Co. LLC and RBC Capital Markets acted as joint lead bookrunners and as representatives of the underwriters for the offering. Canaccord Genuity Corp. and CIBC Capital Markets acted as co-managers for the offering.

Gatos Silver is a U.S.-based precious metals production, development and exploration company with the objective of becoming a premier silver producer. It is currently focused on the production and continued development of the Cerro Los Gatos Mine and the further exploration and development of the Los Gatos District.

The Skadden team for the underwriters included Capital Markets partners Ryan Dzierniejko (Picture) and Michael Zeidel, and associates Jennifer Friedman and Aliza Rana. All attorneys are located in New York.

Davis Polk advised Gatos Silver with a capital markets team which included partners Richard D. Truesdell Jr. and Derek Dostal and associates Stephen A. Byeff, David Li and Chelsea Renter. Partner Veronica M. Wissel, counsel Gregory D. Hughes and associate Kathleen Ginder provided executive compensation advice. Partner Mario J. Verdolini and associate Lex L. Varga provided tax advice.

Involved fees earner: Stephen Byeff – Davis Polk & Wardwell; Derek Dostal – Davis Polk & Wardwell; Kathleen Ginder – Davis Polk & Wardwell; Gregory Hughes – Davis Polk & Wardwell; David Li – Davis Polk & Wardwell; Chelsea Renter – Davis Polk & Wardwell; Richard Truesdell Jr. – Davis Polk & Wardwell; Lex Varga – Davis Polk & Wardwell; Mario Verdolini – Davis Polk & Wardwell; Veronica Wissel – Davis Polk & Wardwell; Ryan Dzierniejko – Skadden Arps Slate Meager & Flom; Jennifer Friedman – Skadden Arps Slate Meager & Flom; Aliza Rana – Skadden Arps Slate Meager & Flom; Michael Zeidel – Skadden Arps Slate Meager & Flom;

Law Firms: Davis Polk & Wardwell; Skadden Arps Slate Meager & Flom;

Clients: BMO Capital Markets; Gatos Silver; Goldman Sachs & Co.; RBC Capital Markets;

Author: Ambrogio Visconti