MAG Silver Announces a $60 Million Private Placement
April 27 2020 - 5:45AM
MAG Silver Corp. (TSX / NYSE American: MAG)
(“MAG”) MAG is pleased to announce that it has arranged a
non-brokered private placement with Mr. Eric Sprott, through
2176423 Ontario Ltd., a corporation beneficially controlled by him,
offering 4,528,302 common shares of MAG (the “Common Shares”) at a
price of C$13.25 per Common Share for gross proceeds of
C$60,000,002 (the “Offering”).
MAG intends to use the net proceeds of the
Offering to fund exploration and development of the Juanicipio
Project and for working capital and general corporate purposes. The
Offering is expected to close on or before April 30, 2020, subject
to satisfaction of customary closing conditions including the
approval of the Toronto Stock Exchange.
Any securities issued pursuant to the Offering
will be subject to a hold period under applicable Canadian
securities laws, which will expire four months plus one day from
the date of closing of the Offering. A finders’ fee is payable in
connection with the Offering.
“Mr. Sprott has recognized this as an investment
opportunity in a world class silver project which is heading into
cash flow in the near future,” said George Paspalas, President and
CEO of MAG. “We understand this is Mr. Sprott’s largest single
investment in the silver space, and would like to thank him for his
strong sign of support.”
The securities to be issued under the Offering
have not been, and will not be, registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities
Act") and may not be offered or sold in the United States
absent registration or an applicable exemption from the
registration requirements of the U.S. Securities Act. This news
release does not constitute an offer to sell or a solicitation of
an offer to buy any of MAG’s securities in the United States.
About MAG Silver Corp.MAG
Silver Corp. is a Canadian advanced stage development and
exploration company focused on becoming a top-tier primary silver
mining company, by exploring and advancing high-grade, district
scale, silver-dominant projects in the Americas. Its principal
focus and asset is the Juanicipio Project (44%), being developed in
a Joint Venture with Fresnillo (56%). The Juanicipio Project is
located in the Fresnillo Silver Trend in Mexico, the world's
premier silver mining camp. Fresnillo as operator, is
currently constructing and developing the surface and underground
infrastructure on the property to support a 4,000 tonnes per day
mining operation. As well, an expanded exploration program is in
place at Juanicipio with multiple highly prospective targets across
the property.
For further information on behalf of
MAG Silver Corp. Contact Michael J. Curlook,
VP Investor Relations and Communications
Phone: (604)
630-1399
Website:
www.magsilver.com
Toll Free: (866)
630-1399
Email:
info@magsilver.com
Neither the Toronto Stock Exchange nor the NYSE
American has reviewed or accepted responsibility for the accuracy
or adequacy of this press release, which has been prepared by
management.
This release includes certain statements that
may be deemed to be “forward-looking statements” within the meaning
of the US Private Securities Litigation Reform Act of 1995. All
statements in this release, other than statements of historical
facts are forward looking statements, including statements that
address future mineral production, reserve potential,
exploration drilling, exploitation activities and events or
developments. Forward-looking statements are often, but not always,
identified by the use of words such as "seek", "anticipate",
"plan", "continue", "estimate", "expect", "may", "will", "project",
"predict", "potential", "targeting", "intend", "could", "might",
"should", "believe" and similar expressions. These statements
involve known and unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from
those anticipated in such forward-looking statements.
Although MAG believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and actual
results or developments may differ materially from those in the
forward-looking statements. Factors that could cause actual results
to differ materially from those in forward-looking statements
include, but are not limited to, changes in
commodities prices, changes in mineral
production performance, exploitation and exploration
successes, continued availability of capital and financing, and
general economic, market or business conditions, the timing and
closing of the private placement; the use of the net proceeds from
the private placement is subject to change; political risk,
currency risk and capital cost inflation. In addition,
forward-looking statements are subject to various risks, including
that data is incomplete and considerable additional work will be
required to complete further evaluation, including but not limited
to drilling, engineering and socio-economic studies and
investment. The reader is referred to the Company’s filings
with the SEC and Canadian securities regulators for disclosure
regarding these and other risk factors. There is no certainty that
any forward-looking statement will come to pass and investors
should not place undue reliance upon forward-looking
statements.
Please Note: Investors are urged to consider
closely the disclosures in MAG's annual and
quarterly reports and other public filings, accessible through
the Internet at www.sedar.com and www.sec.gov.
LEI:
254900LGL904N7F3EL14
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