First Majestic Silver Corp. Announces At-The-Market Offering Equity Program
December 27 2018 - 7:25PM
First Majestic Silver Corp. (NYSE:AG) (TSX:FR) (the “Company” or
“First Majestic”) is pleased to announce it has entered into an
equity distribution agreement dated December 27, 2018 (the
“Sales Agreement”) with BMO Capital Markets Corp. (the “Agent”)
pursuant to which the Company may, at its discretion and from
time-to-time during the term of the Sales Agreement, sell, through
the Agent, such number of common shares of the Company (“Common
Shares”) as would result in aggregate gross proceeds to the Company
of up to US$50.0 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 New York Stock Exchange (the “NYSE”), 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
at market prices, or as otherwise agreed upon by the Company and
the Agent. 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 December 27, 2018 to the base prospectus
included in the Company’s existing US registration statement
on Form F-10 (the “Registration Statement”) and Canadian short
form base shelf prospectus (the “Base Shelf Prospectus”) dated
November 5, 2018. The prospectus supplement relating to the
Offering has been filed with the securities commissions in each of
the provinces of Canada (other than Québec) and the United States
Securities and Exchange Commission (the "SEC"). The US prospectus
supplement (together with the related base prospectus) is available
on the SEC's website (www.sec.gov) and the Canadian prospectus
supplement (together with the related Base Shelf Prospectus) will
be available on the SEDAR website maintained by the Canadian
Securities Administrators at www.sedar.com. Alternatively, the
Agent will provide copies of the US prospectus and US
prospectus supplement upon request by contacting the Agent (c/o BMO
Capital Markets Corp., Attention: Equity Syndicate Department, 3
Times Square, New York, NY 10036, or by telephone at (800)
414-3627, or by email: bmoprospectus@bmo.com).
The Company expects to use the net proceeds of
the Offering, if any, 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.
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 the Company
First Majestic is a 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, the La Encantada Silver Mine, the La
Parrilla Silver Mine, the San Martin Silver Mine and the Del Toro
Silver Mine. Production from these mines are projected to be
between 12.0 to 13.2 million silver ounces or 20.5 to 22.6 million
silver equivalent ounces in 2018.
For further information contact
info@firstmajestic.com or call Investor Relations at
1-866-529-2807.
FIRST MAJESTIC SILVER CORP.
“Keith Neumeyer”
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. Forward-looking
statements include, but are not limited to, statements regarding
the anticipated offering of Common Shares under the Offering and
the anticipated use of proceeds from the Offering, if any; and
estimated production rates for silver and other payable metals.
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 statements 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 to be materially different from those expressed or
implied by such forward-looking statements, including but not
limited to, the timing and ability to obtain applicable regulatory
approval; variations in market conditions; changes in national and
local government, legislation, taxation, controls, regulations and
political or economic developments in Canada or Mexico; operating
or technical difficulties in connection with mining or development
activities; risks and hazards associated with the business of
mineral exploration, development and mining (including
environmental hazards, industrial accidents, unusual or unexpected
formations, pressures, cave-ins and flooding); risks relating to
the credit worthiness or financial condition of suppliers, refiners
and other parties with whom the Company does business; inability to
obtain adequate insurance to cover risks and hazards; and the
presence of laws and regulations that may impose restrictions on
mining, including those currently enacted in Mexico; employee
relations; relationships with and claims by local communities and
indigenous populations; availability and increasing costs
associated with mining inputs and labour; the speculative nature of
mineral exploration and development, including the risks of
obtaining necessary licenses, permits and approvals from government
authorities; diminishing quantities or grades of mineral reserves
as properties are mined; the Company’s title to properties; as well
as those factors discussed in the section entitled “Description of
Business - Risk Factors” in First Majestic’s Annual Information
Form for the year ended December 31, 2017, available on
www.sedar.com, and Form 40-F on file with the SEC. Although First
Majestic 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
does not undertake to update any forward-looking statements, except
in accordance with applicable securities laws.
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