First Majestic Completes Acquisition of Springpole Silver Stream

VANCOUVER, British Columbia, July 02, 2020 (GLOBE NEWSWIRE) -- First Majestic Silver Corp. (AG: NYSE; FR: TSX; FMV: Frankfurt) (the "Company" or “First Majestic”) is pleased to announce that all outstanding conditions required to complete the previously announced Springpole Silver Stream agreement with First Mining Gold Corp. (“First Mining”) have been fulfilled. 

 

Under the agreement, First Majestic has agreed to purchase 50% of the payable silver produced from the Springpole Gold Project (“Springpole” or the “Project”) located in Ontario, Canada. First Majestic agreed to pay First Mining total consideration of $22.5 million in cash and shares, over three payments, for the silver stream which covers the life of the Project. The first payment consisting of $2.5 million in cash and $7.5 million in First Majestic shares (805,698 First Majestic shares issued at a deemed price equal to the 20-day VWAP on the Toronto Stock Exchange) has been paid to First Mining. In addition, First Majestic will make ongoing cash payments of 33% of the silver spot price per ounce, to a maximum of $7.50 per ounce, for all payable silver delivered by Springpole. First Mining has also granted First Majestic 30 million common share purchase warrants, each of which will entitle the Company to purchase one common share of First Mining at CAD$0.40 over a period of five years.

 

Full details of the transaction can be found in First Majestic’s news release dated June 11, 2020.

 

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. 

 

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