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 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.
Source: Company Press Release