MAG Silver Announces US$50M At-The-Market Offering
June 30 2020 - 6:45AM
MAG Silver Corp. (TSX / NYSE American:
MAG) (“MAG Silver” or the “Company”) is pleased to
announce it has entered into a sales agreement dated June 29, 2020
(the “Sales Agreement”) with Raymond James & Associates (the
"Lead Agent"), Canaccord Genuity (together with the Lead Agent, the
"Selling Agents"), BMO Capital Markets, H.C. Wainwright & Co.,
Roth Capital Partners and TD Securities (together, the
“Agents”) pursuant to which MAG Silver may, at its discretion and
from time-to-time during the term of the Sales Agreement, sell in
the United States, through the Agents, such number of common shares
of the Company (“Common Shares”) as would result in aggregate gross
proceeds to the Company of up to US$50 million (the “Offering”).
Sales of Common Shares will be made through “at-the-market
distributions” as defined in the Canadian Securities
Administrators’ National Instrument 44-102-Shelf Distributions,
including sales made directly on the NYSE American, or any other
recognized marketplace upon which the Common Shares are listed or
quoted or where the Common Shares are traded in the United States.
The sales, if any, of Common Shares made under the Sales Agreement
will be made by means of ordinary brokers’ transactions on the NYSE
American at market prices, or as otherwise agreed upon by MAG
Silver and the Agent. Under the Sales Agreement, no offers or sales
of Common Shares will be made in Canada on the Toronto Stock
Exchange (the “TSX”) or other trading markets in Canada.
The Offering will be made by way of a prospectus
supplement dated June 29, 2020 to the base prospectus included in
the Company’s effective U.S. registration statement (the
“Registration Statement”) on Form F-10 (File No. 333-237807). The
prospectus supplement relating to the Offering has been filed with
the securities commissions in each of the provinces of Canada and
territories of Canada and the United States Securities and Exchange
Commission (the "SEC"). Copies of the Registration Statement,
prospectus supplement and base prospectus are available for no
charge on the SEC's website (www.sec.gov). Copies of the base
prospectus and prospectus are also available for no charge on the
SEDAR website maintained by the Canadian Securities Administrators
at www.sedar.com. Prospective investors should read the
Registration Statement, the base prospectus and the prospectus
supplement before making an investment decision.
MAG Silver intends to use the net proceeds of
the Offering, if any, primarily to fund the completion of
construction of the Juanicipio Project, with any remainder to fund
further exploration of Juanicipio and other projects, and for
working capital and general corporate purposes.
No securities regulatory authority has either
approved or disapproved the contents of this press release. This
press release does not constitute an offer to sell or the
solicitation of an offer to buy securities, nor will there be any
sale of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of any such
jurisdiction.
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. The Juanicipio
Joint Venture is currently constructing and developing the surface
and underground infrastructure on the property to support a 4,000
tonnes per day mining operation, with the operational expertise of
Fresnillo, the project operator. As well, an expanded exploration
program is in place at Juanicipio with multiple highly prospective
targets across the property.
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 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
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
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