First Majestic Announces C$25 Million Offering
February 18, 2009
FIRST MAJESTIC SILVER CORP. (FR-T) (“First Majestic” or the “Company”)
is pleased to announce that it has filed a preliminary short-form
prospectus in connection with a proposed over-night marketed offering of
approximately C$25 million of units (“Units”), with each Unit
consisting of one common share (a “Common Share”) in the capital of
First Majestic and one-half of one Common Share purchase warrant (a
“Warrant”). Each whole Warrant will entitle the holder to acquire one
additional Common Share 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 to cover overallotments and for market
stabilization purposes. The underwriting syndicate will be led by CIBC
World Markets Inc.
The Company intends to use $15.5 million of the net proceeds of the
Offering on mill construction and mine expansion and improvements at the
Company’s La Encantada property, with the remainder of the proceeds to
be used for general working capital.
The Units will be sold publicly in all provinces of Canada except Quebec
and on a private placement basis in the United States pursuant to
exemptions from the registration requirements of the U.S. Securities Act
of 1933, as amended, and internationally pursuant to available
Closing of this offering is expected to occur on or about March 5, 2009
and is subject to receipt of all necessary regulatory approvals,
including the approval of the Toronto Stock Exchange. The securities
have not been registered under the U.S. Securities Act of 1933, as
amended, or any state securities laws and may not be offered or sold in
the United States absent registration or any applicable exemption from
the registration requirements. This press release does not constitute an
offer to sell or the solicitation of an offer to buy nor will there be
any sale of the securities in any state in which such offer,
solicitation or sale would be unlawful.
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 corporate growth objectives.
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.