April 20, 2007
FIRST MAJESTIC SILVER CORP. (FR-V) (the “Company”) is pleased to
announce that it has engaged Cormark Securities Inc. (formerly Sprott
Securities Inc.) and CIBC World Markets Inc. (as co-lead underwriters)
and Blackmont Capital Inc. (the “Underwriters”) as underwriters to
purchase on a “bought-deal” basis up to 4 million Special Warrants of
the Company at a price of $5.00 per Special Warrant (the “Issue Price”)
for aggregate gross proceeds to First Majestic Silver Corp. of $20
million. The Underwriters will have the option to sell up to an
additional $24 million of the Offering at the Issue Price at any time
prior to the closing date. Each Special Warrant will be exercisable for
one Unit of the Company and will be automatically exercised for one
Unit of the Company on the date the Company obtains a final receipt for a
prospectus qualifying the underlying shares. In the event the Company
has not obtained a final receipt prior to the date that is eleven weeks
after the closing date, each Special Warrant will be automatically
exercised for 1.08 Units. Each Unit will entitle the holder to acquire
one common share and one-half of one share purchase warrant. Each whole
share purchase warrant will be exercisable at a price of $6.50 for a
period of 18 months from the date of closing. The underwriters will
receive a commission of 5.5% of the gross proceeds of the offering at
closing. The offering is scheduled to close on or about May 10, 2007
and is subject to certain conditions including, but not limited to,
satisfactory due diligence and the receipt of all necessary approvals
including the approval of the TSX Venture Exchange.
Further to the Company’s press release dated March 28, 2007 under which
the Company announced the filing of a preliminary short form prospectus,
the Company advises that it is withdrawing that prospectus. The
Company has been asked by the securities regulatory authorities to
update its 43-101 technical reports for its principal properties and,
since it became unlikely that a receipt for its short form prospectus
was going to be issued by securities regulatory authorities by the time
required under the short form offering, the Company has voluntarily
withdrawn the short form prospectus and is proceeding with the private
placement disclosed above.
First Majestic is a producing silver company focused in Mexico and is
aggressively pursuing its business plan to become a senior silver
producer through development of its existing assets and the pursuit
through acquisition of additional assets that make sense to achieving
its corporate objective.
The securities offered have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold in
the United States absent registration or an application exemption from
the registration requirements. This press release shall not constitute
an offer to sell or the solicitation of an offer to buy nor shall there
be any sale of the securities in any State in which such offer,
solicitation or sale would be unlawful.
FOR FURTHER INFORMATION contact firstname.lastname@example.org, visit our
website at www.firstmajestic.com
or call our toll free number
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
FIRST MAJESTIC SILVER CORP.
President & CEO
This press release includes certain “Forward-Looking Statements” within
the meaning of section 21E of the United States Securities Exchange Act
of 1934, as amended. All statements, other than statements of historical
fact, included herein, including without limitation, statements
regarding potential mineralization and reserves, exploration results and
future plans and objectives of First Majestic Resource Corp. are
forward-looking statements that involve various risks and uncertainties.
There can be no assurance that such statements will prove to be
accurate and actual results and future events could differ materially
from those anticipated in such statements.
The TSX Venture Exchange has in no way passed upon the merits of the
proposed transaction and the TSX Venture Exchange does not accept
responsibility for the adequacy or accuracy of this release