New York – AG
Toronto – FR
Frankfurt – FMV
/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
VANCOUVER, BC, Sept. 10, 2020 /CNW/ - FIRST MAJESTIC SILVER
CORP. (AG: NYSE; FR: TSX) (the "Company" or "First Majestic") is
pleased to announce that it has entered into an agreement with
Cormark Securities Inc., as underwriter (the "Underwriter")
pursuant to which the Underwriter has agreed to purchase, on a
bought deal basis, 5,000,000 common shares of First Majestic (the
"Common Shares") at a price of CDN$15.60 per Common Share for gross proceeds of
CDN$78,000,000 (the "Offering").
The sole investor under the Offering will be Canadian
billionaire businessman, Eric
Sprott, through 2176423 Ontario Ltd., a corporation
beneficially controlled by him. This investment will result in Mr.
Sprott holding approximately 2.3% of First Majestic's issued and
outstanding common shares, post-closing.
Mr. Sprott, commented, "We believe there has been a lack of
appreciation for First Majestic's equity in 2020 and we are happy
to align ourselves with Keith who recognizes the mispricing of
silver in the marketplace and has been a stalwart for silver."
Keith Neumeyer, President and CEO
of First Majestic Silver, commented, "We are very pleased to
welcome Mr. Sprott as a significant shareholder in First Majestic.
As a fellow silver bull, Eric has been recognized as one of the
most influential leaders within the silver investment community and
this deal represents his largest treasury investment in a silver
producer, let alone the entire silver space."
The Company expects to use the net proceeds of the Offering,
together with the Company's current cash resources, to develop
and/or improve the Company's existing mines and to add to the
Company's working capital.
The Offering will be by way of a prospectus supplement (the
"Prospectus Supplement") under the Company's existing Canadian
short form base shelf prospectus (the "Base Shelf Prospectus")
dated November 5, 2018. The Prospectus Supplement will be
filed in all of the provinces of Canada other than Québec and, together with
the related Base Shelf Prospectus, will be available on SEDAR at
www.sedar.com.
The Offering is scheduled to close on or before September 17, 2020 and is subject to certain
conditions including, but not limited to, receipt of all regulatory
approvals, including the approval of the Toronto Stock Exchange.
The securities offered in the Offering have not been, and will not
be, registered under the U.S. Securities Act or any U.S. state
securities laws, and may not be offered or sold in the United States or to, or for the account or
benefit of, United States persons
absent registration or any applicable exemption from the
registration requirements of the U.S. Securities Act and applicable
U.S. state securities laws. This news release shall not constitute
an offer to sell or the solicitation of an offer to buy securities
in the United States, nor will
there be any sale of these securities in any jurisdiction in which
such offer, solicitation or sale would be unlawful.
ABOUT THE COMPANY
First Majestic is a publicly traded mining company focused on
silver production in Mexico and is
aggressively pursuing the development of its existing mineral
property assets. The Company presently owns and operates the San
Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine and the La
Encantada Silver Mine. Production from these mines are
projected to be between 11.0 to 11.7 million silver ounces or 21.4
to 22.9 million silver equivalent ounces in 2020.
FIRST MAJESTIC SILVER CORP.
"signed"
Keith Neumeyer, President &
CEO
Forward-Looking Statements
This press release
contains "forward-looking statements", within the meaning of the
United States Private Securities Litigation Reform Act of 1995 or
forward looking information within the meaning of applicable
Canadian securities legislation, concerning the business,
operations and financial performance and condition of First
Majestic Silver Corp. Forward-looking statements include, but are
not limited to, statements with respect to closing of the Offering
and the timing thereof; the proposed use of proceeds of the
Offering; receipt of all regulatory approvals; and production
estimates from the Company's mines. Generally, these
forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or state that
certain actions, events or results "may", "could", "would", "might"
or "will be taken", "occur" or "be achieved". Forward-looking
statements are subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of
activity, performance or achievements of First Majestic Silver
Corp. to be materially different from those expressed or implied by
such forward-looking statements, including but not limited to:
failure to obtain regulatory approval of the Offering; the
occurrence of a material adverse change, disaster, change of law or
other failure to satisfy the conditions to closing of the Offering;
risks related to the integration of acquisitions; risks related to
international operations; risks related to joint venture
operations; actual results of current exploration activities;
actual results of current reclamation activities; conclusions of
economic evaluations; changes in project parameters as plans
continue to be refined; future prices of metals; possible
variations in ore reserves, grade or recovery rates; failure of
plant, equipment or processes to operate as anticipated; accidents,
labour disputes and other risks of the mining industry; delays in
obtaining governmental approvals or financing or in the completion
of development or construction activities, as well as those factors
discussed in the section entitled "Description of Business - Risk
Factors" in First Majestic Silver Corp.'s Annual Information Form
for the year ended December 31, 2019,
available on www.sedar.com, and Form 40-F on file with the
United States Securities and Exchange Commission in Washington, D.C. Although First Majestic
Silver Corp. has attempted to identify important factors that could
cause actual results to differ materially from those contained in
forward-looking statements, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements. First Majestic
Silver Corp. does not undertake to update any forward-looking
statements that are incorporated by reference herein, except in
accordance with applicable securities laws.
SOURCE First Majestic Silver Corp.
