Gatos Silver Amends Joint Venture Agreements with Dowa to Obtain Enhanced Management Rights and Announces Financial Statement Consolidation

Core Viewpoint - Gatos Silver has entered into amended agreements with Dowa Metals & Mining, enhancing its management rights in the Los Gatos Joint Venture, allowing for full financial consolidation starting January 1, 2025, while maintaining ownership interests at 70% for Gatos Silver and 30% for Dowa [1][2][3] Group 1: Amended Agreements - The amended agreements strengthen Dowa's zinc concentrate offtake rights and update management service terms provided by Gatos Silver [2] - The agreements reduce supermajority voting requirements and grant Gatos Silver a new sole-funding right for significant modifications or expansions of the mine or plant [2] Group 2: Financial Impact - Full financial consolidation will streamline Gatos Silver's financial reporting, providing a clearer picture of the company's performance, especially in light of the anticipated merger with First Majestic [3] Group 3: Company Background - Gatos Silver is a silver-focused exploration, development, and production company, primarily operating the Cerro Los Gatos mine in Mexico, with a 70% stake in the Los Gatos Joint Venture [8] - The LGJV encompasses approximately 103,000 hectares of mineral rights, indicating a highly prospective area with numerous identified mineralized zones [8] Group 4: Merger with First Majestic - Gatos Silver and First Majestic announced a definitive merger agreement, aiming to consolidate three major silver mining districts in Mexico to create a leading intermediate primary silver producer [9]