Gatos Silver’s $160 Million Shares Offering

Davis Polk advised Gatos Silver on the deal.

Gatos Silver, Inc. executed an SEC-registered follow-on equity offering of 11,430,000 shares of common stock, including 2,500,000 shares of common stock offered by certain selling stockholders. The gross proceeds of the offering to Gatos Silver were approximately $125 million and the gross proceeds of the offering to the selling stockholders were approximately $35 million. Gatos Silver is listed on the New York Stock Exchange and the Toronto Stock Exchange under the ticker symbol “GATO.”

Gatos Silver is a silver dominant exploration, development and production company that discovered a new silver and zinc-rich mineral district in southern Chihuahua State, Mexico. To-date, 14 zones of mineralization have been defined within the district and all are characterized by silver-zinc-lead epithermal mineralization. More than 85% of the approximately 103,087-hectare mineral rights package has yet to be drilled, representing a highly prospective and under-explored district. As a 70%-owner of the Los Gatos Joint Venture (“LGJV”), the company recently built and commissioned its first operating mine and mineral processing plant at the LGJV’s Cerro Los Gatos deposit.

The Davis Polk capital markets team included partner Richard D. Truesdell Jr. (Picture) and associates Stephen A. Byeff, David Li and Xi (Brooke) Zheng. Partner Mario J. Verdolini and associates Lex L. Varga and Bradford Sherman provided tax advice.

Involved fees earner: Stephen Byeff – Davis Polk & Wardwell; David Li – Davis Polk & Wardwell; Bradford Sherman – Davis Polk & Wardwell; Richard Truesdell Jr. – Davis Polk & Wardwell; Lex Varga – Davis Polk & Wardwell; Mario Verdolini – Davis Polk & Wardwell; Brooke Zheng – Davis Polk & Wardwell;

Law Firms: Davis Polk & Wardwell;

Clients: Gatos Silver;

Author: Martina Bellini