Page 40 company s eforts to optimize the T immins operations Once the Bell Creek shaft project is complete and the mine ramps up by year end man agement expects the mill to achieve sustainable throughput exceeding 4400 tpd with minimal additional capital expenditure This is expected to lead to improved Q4 gold produc tion But the problems encountere d at the Escobal silver mine in Guatemala were enormous by comparison The mine opened in 2014 and enjoyed three consecuti ve years of production above 20 milli on oz of silver concen trate per year prior to 2017 In 2017 Escobal was ordered shut by the Guatemalan Supreme Court after an appeal to the court on the grounds that T ahoe had been awarded its li cense to operate by the Ministry of Mining and Ener gy without properly consulting with the indigenous people on whose traditional land the mine was located As of October 2018 Guatemalan Supreme Court has au thorized the consultations with indig Contd from pg 38 Page 40 enous groups to begin Pursuant to the purchase arrange ment T ahoe shareholders have elect ed to receive US340 in cash or 02403 Pan American shares for each T ahoe share subject in each case to proration based on a maximum cash consideration of US275 million and a maxi mum number of Pan Ameri can shares issued of 560 mil lion to taling US1067 million the Base Purchase Price The Base Purchase Price represents a premium of 349 to T ahoe s volume weighted average price VW AP for the 20day pe riod ending on Nov 13 2018 In addition T ahoe shareholders will receive contin gent consideration in the form of contingent value rights CVRs that will be exchanged for 00497 Pan American shares for each T ahoe share currently valued at US221 mil lion and payable upon frst commercial shipment of con centrate following restart of opera tions at the Escobal mine the Con tingent Purchase Price The CVRs will be transferable and have a term of 10 years The total consideration including the Base Purchase Price and the Contingent Purchase Price is US410 per share representin g a pre mium of 628 to T ahoe s VW AP for the 20day period ending on Novem ber 13 2018 This transaction allowed our share holders to participate in the creation of the world s premier silver company with the contribution of the world class Escobal mine to Pan Ameri can s existing asset base said Kevin McArthur Executive Chair of T ahoe Resources In addition to the upfront premium we will continue to partici pate in the upside inherent in a restart of Escobal through the CVRs Each of T ahoe s directors and senior ofcers who together hold or exer cise control or direction over approxi mately 53 million common shares of T ahoe representing approximately 17 of T ahoe s issued and outstand ing common shares have ente red into support agreements with Pan Ameri can agreeing to vote their T ahoe shares in favour of the transaction Shareholder s allo w ed t o par ticipat e in creation of w orlds premier silv er compan y