FR.to - First Majestic arranges $25-million offering
2009-02-18 13:22 PT - News Release
Mr. Keith Neumeyer reports
FIRST MAJESTIC ANNOUNCES C$25 MILLION OFFERING
First Majestic Silver Corp. has filed a preliminary short-form prospectus in connection with a proposed over-night marketed offering of approximately $25-million of units, with each unit consisting of one common share in the capital of First Majestic and one-half of one common share purchase 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 per cent 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.
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.
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