First Majestic Silver Corp.: Drill Intersects 39.6 Metres of 199 g/t Ag, 3.92% Pb & 4.02% Zn at San Juan Silver Mine
March 5, 2008
Majestic Silver Corp. (“First Majestic” or the “Company”) has today
entered into an agreement with a syndicate of underwriters led by CIBC
World Markets Inc. and including Blackmont Capital Inc., Cormark
Securities Inc. and GMP Securities L.P., under which the underwriters
have agreed to buy 8,500,000 Units (“Units”), from First Majestic at an
issue price of $5.35 per Unit representing an aggregate offering of
approximately $45 million (“The Offering”). Each Unit will consist of
one common share (a “Common Share”) in the capital of First Majestic and
one-half of one Common Share purchase warrant. Each whole Common Share
purchase warrant (a “Warrant”) will entitle the holder to acquire one
additional Common Share at a price of $7.00 for a period of 24 months
from the closing of the Offering. The Company will grant the
underwriters an option, exercisable up until 30 days following closing
of the offering, to purchase up to an additional 15% of the number of
Common Shares and Warrants at the issue price. Closing is expected on or
about March 25, 2008.
The Company plans to use certain of the net proceeds of the offering for
the expansion of each of the mill capacities at the Company’s three
producing silver mines in Mexico, the La Parrilla, La Encantada and San
Martin silver mines. In addition, certain of the net proceeds will be
used for the ongoing development and exploration programs presently
underway and for general working capital.
Closing of the Offering is subject to certain conditions, including but
not limited to, receipt of all necessary securities regulatory
approvals, including the approval of the Toronto Stock Exchange.
The Offering is being made in all Provinces of Canada except Quebec and
is subject to the approval of regulatory authorities. 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 applicable 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 please contact: firstname.lastname@example.org, visit
our website at www.firstmajestic.com
or call our toll free number
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 Silver 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.