First Majestic Announces Closing of CDN$78 Million Bought Deal Investment by Billionaire Eric Sprott

VANCOUVER, British Columbia, Sept. 17, 2020 (GLOBE NEWSWIRE) -- FIRST MAJESTIC SILVER CORP. (AG: NYSE; FR: TSX) (the "Company" or “First Majestic”) is pleased to report that it has closed the previously announced bought deal with Eric Sprott, through 2176423 Ontario Ltd., a corporation beneficially controlled by himself.

 

The Company issued an aggregate of 5,000,000 common shares of First Majestic (the “Common Shares”), on a bought deal basis, at a price of CDN$15.60 per Common Share for gross proceeds of CDN$78,000,000 (the “Offering”) pursuant to an underwriting agreement dated September 14, 2020 entered into between the Company and Cormark Securities Inc., as underwriter.

 

The Company intends to use the net proceeds of the Offering, together with the Company’s current cash resources, to develop mining projects and/or improve the Company's existing mines and to add to the Company's working capital.

 

The Offering was made 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 has been filed in all of the provinces of Canada other than Québec and, together with the related Base Shelf Prospectus, is available on SEDAR at www.sedar.com.

 

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.

 

FOR FURTHER INFORMATION contact info@firstmajestic.com, visit our website at www.firstmajestic.com or call our toll-free number 1.866.529.2807.