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Tue Mar 30, 2004
Pan American Silver Makes Offer To Encourage Conversion Of Outstanding Debentures
Vancouver, Canada - PAN AMERICAN SILVER CORP. (NASDAQ: PAAS; TSX: PAA) announced today the terms of its formal offer (the "Offer") to encourage conversion by holders of the Company's US$86.25 million outstanding principal amount of 5.25% convertible debentures due July 31, 2009 (the "Debentures"). At present, Pan American can only force conversion of the Debentures after a three-year term that expires on July 31, 2006.
Pursuant to the Offer, which is open from April 7, 2004 to May 21, 2004 (the "Conversion Period"), each holder who converts all or a portion of his or her Debentures during the Conversion Period will receive US$131.25 in cash plus 106.9290 common shares of the Company per US$1,000 principal amount of Debentures converted. This represents the 104.4932 shares to which holders were originally entitled upon conversion plus 2.4358 additional shares, which is equal to a four percent premium.
Holders who wish to accept this Offer should contact their investment advisor in order to exercise their conversion rights. This Offer is subject to conditions set out in a written offer document being delivered to Debenture holders.
In connection with this offer, Pan American has filed a final short form prospectus with securities commissions in British Columbia, Alberta, Manitoba and Ontario. This filing relates to the issuance of up to 210,087 common shares of the Company in connection with the Offer. A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
For further information, including copies of the written offer documents or the U.S. final prospectus, contact:
Brenda Radies, VP Corporate Relations
(604) 684-1175
1500 -- 625 Howe Street, Vancouver, B.C.
Canada, V6C 2T6.
www.panamericansilver.com
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