First Majestic Silver Corp.: Non-Brokered Private Placement and Debt Settlement
August 12, 2009
Majestic Silver Corp. (the “Company”) is pleased to announce a proposed
non-brokered private placement offering consisting of up to 4,000,000
units (“Units”) of the Company to be issued at a price of CDN$2.30 per
Unit (the “Offering”) for gross proceeds of up to $9,200,000. Each Unit
will consist of one common share (a “Unit Share”) and one-half of one
common share purchase warrant (a “Warrant”), with each full Warrant
entitling the holder to purchase one additional common share of the
Company (“Warrant Shares”) at an exercise price of CDN$3.30 per Warrant
Share for a period of two years after the closing of the Offering.
The Company is also pleased to announce that it will settle certain
debts of its subsidiaries in the aggregate amount of up to $4,000,000
and has entered into debt settlement agreements with those creditors to
settle such debt by the issuance of up to 1,739,130 common shares (the
“Debt Shares”) of the Company at a deemed price of CDN$2.30 per Common
The Company plans to use the net proceeds of the Offering as general
working capital in respect to its three operating silver mines; the La
Encantada Silver Mine, La Parrilla Silver Mine, and the San Martin
Silver Mine all located in Mexico.
A finder’s fee of 6% cash will be payable on a portion of this private
placement to an arm’s length party. Closing of the private placement and
the debt settlement is subject to receipt of all required regulatory
approvals, including the consent of the Toronto Stock Exchange.
First Majestic is a producing silver company focused in Mexico and is
aggressively pursuing its business plan to become a senior silver
producer through the development of its existing assets and the pursuit
through acquisition of additional assets that contribute to achieving
its significant corporate growth objectives.
FOR FURTHER INFORMATION 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.