Pan American offers $1.1 billion for Canada's Tahoe

Shares in Canada's Tahoe Resources soared nearly 45 percent  after Pan American Silver said it agreed to buy the Reno-based mining company for $1.07 billion in cash and stock.

The deal will create the largest publicly traded silver mining company by free float, Pan American said in a statement, and the world's largest silver reserve base and silver measured and indicated resource base.

Pan American said that Tahoe shareholders will receive consideration in the form of contingent value rights that will be exchanged for 0.0497 Pan American shares for each Tahoe share, currently valued at $221 million, and payable upon first commercial shipment of concentrate following restart of operations at the Escobal mine in Guatemala.