MAG Silver Announces Closing of $60 Million Private Placement
April 30 2020 - 12:06PM
MAG Silver Corp. (TSX / NYSE American:
MAG) (“MAG”) MAG is pleased to report that it has
completed its previously announced non-brokered private placement
offering of 4,528,302 common shares of MAG (the "Common Shares") to
Mr. Eric Sprott, through 2176423 Ontario Ltd., a corporation
beneficially controlled by him, 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 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 to a group of financial advisors led
by Clarus Securities Inc.
“We thank Mr. Sprott for his support,” said
George Paspalas, President and CEO of MAG. “His investment gives us
considerable funding flexibility moving forward and positions us
well as we continue advancing the surface construction and bring
the underground mine into commercial production.”
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 working with Mexican Government officials to
determine the most appropriate compliance approach to a temporary
suspension decree associated with the COVID-19 pandemic, while
minimizing the impact on the construction of 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 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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