Pan American Silver Corp. to Launch Friendly Offer For Aquiline Resources Inc. - Conference Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jonathon van Orden - - Analyst : Yes, good morning, guys. I just have one quick question with regards to the warrants. What warrants -- are they transferable and will they be listed in trade?

Question: Jonathon van Orden - - Analyst : They will not be listed in trade?

Question: Jonathon van Orden - - Analyst : Okay. Thank you very much.

Question: Chris Lichtenheldt - UBS - Analyst : Good morning. Congratulations on the friendly nature of the agreement. My first question is just regarding your comments about the mining laws in Chubut and your sense that attitudes are potentially changing. Can you give us a little bit more indication as to what you're seeing that leads you to believe that? Or secondly, when we might see something definitive on that in terms of timing, when something might come through that really emphasizes that they are a go-ahead with these sorts of things?

Question: Chris Lichtenheldt - UBS - Analyst : Okay, great, thanks. And just since we're talking about timing, do you have timing of the next stage of development for Navidad in terms of feasibility or --?

Question: Chris Lichtenheldt - UBS - Analyst : Okay, great. Thanks a lot. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 14, 2009 / 2:00PM, PAAS.TO - Pan American Silver Corp. to Launch Friendly Offer For Aquiline

Question: Haytham Hodaly - Salman Partners - Analyst : Morning, Geoff, Marc. How are you?

Question: Haytham Hodaly - Salman Partners - Analyst : Just a couple quick questions, I guess, just with regards -- just to follow up, actually, with the last question. Assuming you do get the law in Chubut changed I guess by middle of next year to allow open-cut mining and a feasibility study done by the end of the following year, what's the total timeline to get this thing actually constructed and into production, you think?

Question: Haytham Hodaly - Salman Partners - Analyst : Okay, so maybe a couple of years to construct and develop. Fair enough. Maybe just a question to Marc. Marc, with regards to the scoping study, was that the Snowden Study that came out?

Question: Haytham Hodaly - Salman Partners - Analyst : And did that actually have the economics in there? I saw a lot of metallurgy, etc. Was there economics provided in that study as well?

Question: Haytham Hodaly - Salman Partners - Analyst : Okay, perfect. I'll have a look at that. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 14, 2009 / 2:00PM, PAAS.TO - Pan American Silver Corp. to Launch Friendly Offer For Aquiline

Question: Mike Jalonen - BofA Merrill Lynch - Analyst : Hi, Geoff and Marc. If I could just -- I found very interesting, Geoff, your comment that the deal is accretive to NAV per share. So I was wondering what parameters are built into that silver price? What do you include? Like does it include the Snowden Study at Loma de La Plata, or is there more assets you've added into that to get accretive to NAV per share?

Question: Mike Jalonen - BofA Merrill Lynch - Analyst : I assume that you're mining more silver than the Snowden Study?

Question: Mike Jalonen - BofA Merrill Lynch - Analyst : Okay. Well, thank you and good luck.

Question: Jeff Kidder - - Analyst : Good morning, Marc. Good morning, Geoff. Congratulations to both of you, nice deal. Did you mention a time for the closing of getting the 63% votes -- or 66% votes?

Question: Jeff Kidder - - Analyst : Okay, thank you.

Question: Vic Mittal - - Analyst : Thanks for taking the question. Could you guys elaborate a bit more on the timing when you see accretion to cash flow for share, assuming a year-end close? And then also a quick follow-up on regulatory approvals. Help me understand the process a little better in Argentina. If you've already discussed a deal with government officials, what's left there?

Question: Vic Mittal - - Analyst : Great. Thanks for the answer. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 14, 2009 / 2:00PM, PAAS.TO - Pan American Silver Corp. to Launch Friendly Offer For Aquiline

Question: Judy Delgado - - Analyst : Yes, good morning, Geoff and Marc. Congratulations on the deal. Just to touch base on something that was mentioned earlier regarding the warrants, I know that they will not be listed and traded. Are we to take that that means they will not be transferable as well?

Question: Judy Delgado - - Analyst : Okay, and transferable upon the deal close?

Question: Judy Delgado - - Analyst : Okay. It sounds as if then maybe perhaps we would have a when-issued market if there were significant appetite for that?

Question: Judy Delgado - - Analyst : Oh okay, great. Wonderful. One more question. It sounds as though we're all focusing on these laws in Argentina, obviously. I guess the one question would be, it sounds with your timing that the laws will not have to be changed in order for this merger to go forward. Is that a fair assumption?

Question: Judy Delgado - - Analyst : Exactly. Should shareholders expect settlements closer -- by the end of this year as stated, or do we have to wait for the actual culmination of these laws to change prior to shareholders being able to expect settlement? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 14, 2009 / 2:00PM, PAAS.TO - Pan American Silver Corp. to Launch Friendly Offer For Aquiline

Question: Judy Delgado - - Analyst : Okay, wonderful. Thank you for the clarification.

Question: Doug Pollitt - Pollitt & Co., Inc. - Analyst : Congratulations, gentlemen. It's nice to see these assets being shepherded forward in a most efficient and effective way. Left-field question, the gold assets in Peru, what are your -- what is Pan American's plans for these and what sort of value would you put on them?

Question: Doug Pollitt - Pollitt & Co., Inc. - Analyst : Thank you very much.

Question: Jonathon van Orden - - Analyst : Good morning, I just had one follow-up question I don't believe you covered. What regulatory approvals will be required for the deal?

Question: Jonathon van Orden - - Analyst : Got you. And in regards to the circular, I believe you said earlier that it's going to be out towards the end of the month. I was just curious in due respect, why the end of the month; why not sooner?

Question: Jonathon van Orden - - Analyst : Understood. Last question is, initially I had asked about the warrants. Any reason why you've decided not to list them and trade them? Is that a decision you have made already or something you are still contemplating?

Question: Jonathon van Orden - - Analyst : Got you. Thanks very much, guys.

Question: Christine Cio - - Analyst : Hi there. My questions have been answered. Thank you.

Question: Haytham Hodaly - Salman Partners - Analyst : Thanks, gentlemen. Just a follow-up question. Geoff, you mentioned obviously several refractory zones on this whole property, the Navidad Project. However, the Loma de La Plata doesn't fall into this category. When you were doing your own analysis, did you incorporate any economic scenario for these refractory zones in there?

Question: Haytham Hodaly - Salman Partners - Analyst : Okay, perfect. Thank you.

Question: Chris Lichtenheldt - UBS - Analyst : Hi. Sorry, I just had another follow-up question on the situation in Argentina in Chubut. Have you contemplated if worst-case scenario unfolded and the laws didn't go your way, is there any sort of development opportunity under the existing laws; meaning like you don't do an open pit or you avoid cyanide leaching?

Question: Chris Lichtenheldt - UBS - Analyst : Okay.

Question: Chris Lichtenheldt - UBS - Analyst : Yes, totally understood.

Question: Chris Lichtenheldt - UBS - Analyst : And just second question, do you have any sort of high-level estimate of what sort of synergies you might be able to reap from Manantial and this project?

Question: Chris Lichtenheldt - UBS - Analyst : Okay. Thanks a lot.