First Majestic Announces Filing of Early Warning Report for Acquisition of Shares of Silver Dollar Resources Inc.
VANCOUVER, British Columbia, Sept. 21, 2020 (GLOBE NEWSWIRE) -- FIRST MAJESTIC SILVER CORP. (AG: NYSE; FR: TSX) (the “Company” or “First Majestic”) announces that
it has filed an early warning report pursuant to the provisions of Canadian securities legislation (the “Early Warning Report”) in connection with the acquisition of common shares
(the “Shares”) of Silver Dollar Resources Inc. (“Silver Dollar”).
Pursuant to an option agreement dated August 7, 2020 between First Majestic and Silver Dollar (the “Option Agreement”), First Majestic has acquired ownership and control of 5,146,401 Shares, representing approximately 14.9% of the outstanding Shares. Based on the market price of the Shares, the value of the Shares is CDN$9,160,594. Prior to the issuance of the 5,146,401 Shares, First Majestic held 500,000 Shares of Silver Dollar or approximately 1.4% of the outstanding Shares. First Majestic now owns and controls 5,646,401 Shares or approximately 16.4% of the outstanding Shares.
Pursuant to the Option Agreement, First Majestic may receive additional Shares of Silver Dollar (equal to 5% of the then outstanding Shares of Silver Dollar in the event the Silver Dollar exercises the option pursuant to the Option Agreement). Depending on market conditions, general economic and industry conditions and subject to a shareholder rights agreement described in the Early Warning Report, Silver Dollar’s business and financial condition and/or other relevant factors, First Majestic may increase or decrease its beneficial ownership of securities of Silver Dollar through market transactions, private agreements or otherwise, in the future.
Silver Dollar is located at 108-800 Kelly Road, Suite 416, Victoria, British Columbia V9B 6J9. First Majestic is located at 1800- 925 West Georgia Street, Vancouver, British Columbia, V6C 3L2. A copy of the Early Warning Report is available on First Majestic’s SEDAR profile at www.sedar.com and may also be obtained by contacting Sophie Hsia, First Majestic’s General Counsel, at 1.866.529.2807.
This press release is issued under the early warning provisions of Canadian securities legislation.
ABOUT THE COMPANY
First Majestic is a publicly traded mining company focused on silver production in Mexico and is aggressively pursuing the development of its existing mineral property assets. The Company presently owns and operates the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine and the La Encantada Silver Mine. Production from these mines are projected to be between 11.0 to 11.7 million silver ounces or 21.4 to 22.9 million silver equivalent ounces in 2020.