Pan American arranges $90-million (U.S.) offering

2009-02-04 16:29 ET - News Release

Ms. Kettina Cordero reports

PAN AMERICAN SILVER ANNOUNCES PUBLIC OFFERING OF COMMON SHARES

Pan American Silver Corp. has filed a preliminary prospectus supplement to its existing base shelf prospectus with the securities regulatory authorities in each of the provinces and territories of Canada and has made a similar filing with the Securities and Exchange Commission in connection with a public offering of its common shares to raise gross proceeds of $90-million (U.S.).

The company will also grant to the underwriters of the offering an option, exercisable for a period of 30 days following the filing of a final prospectus supplement, to purchase additional common shares for consideration of up to $13.5-million (U.S.).

The company expects to use the net proceeds of this offering to fund acquisitions, development programs on acquired mineral properties, working capital requirements and for other general corporate purposes.

Goldman Sachs Canada Inc. and CIBC World Markets Inc. will act as colead managers and joint book runners of the offering.

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