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First Majestic Completes Acquisition of Surface
Rights, Royalties
and Infrastructure at Real de Catorce Silver Project
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VANCOUVER, November 10, 2010 - First Majestic Silver Corp. ("First
Majestic") (TSX: FR) is pleased to announce the closing today of the
acquisition of all the real estate interests including the original
mill and infrastructure and underlying royalties and bonuses which were
associated with the Real de Catorce Silver Project in
San Luis Potosi
State, Mexico.
The total purchase price of US$3,000,000 consists of US$1,500,000 cash
and the issuance of US$1,500,000 in common shares of First Majestic
equalling 152,798 shares at a deemed price of $9.91
per share based on
the volume weighted average of the past five days trading. The package
includes title to all of the land underlying the Santa Ana Hacienda
located within the Real de Catorce property, together
with all
associated buildings and certain historic geological and proprietary
mining information relating to the project.
The Real de Catorce Silver Mine which was acquired in
November 2009,
had been subject to a 3% net smelter royalty ("3% NSR"), of which
1.75%
could be acquired for a total price of US$1.75 million, if paid prior
to March 15, 2014, otherwise the total purchase price would increase to
US$2.1 million. In addition, the previous owner (Normabec)
had agreed
to acquire the surface rights, the buildings located thereon which
cover the location of the previous mining operations, and all technical
and geological information, in consideration for a single payment of
US$1.2 million to be made by December 2010. The Company was also
obligated upon commencement of commercial production, to pay an
additional US$200,000 to the previous owner.
The acquisition by the Company today replaces the above mentioned total
cash payments of between $3.15 and $3.4,with a total purchase price of
US$3.0 million in cash and shares, and removes entirely any future NSR
on the Real de Catorce project.
The Company is currently evaluating its alternatives for future
production in the area, including the evaluation of past exploration
works in order to plan for future underground development, mining and
processing plant alternatives. In the meantime, the Company is planning
to rehabilitate the Santa Ana Hacienda for the purpose of opening a
mining museum to help the community create new jobs and increase the
economic opportunities in the area.
The shares issued in this agreement will be subject to a four month
hold period from the date of issuance under applicable Canadian
securities laws.
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 contact info@firstmajestic.com, visit our
website at www.firstmajestic.com or call our toll free number
1.866.529.2807.
FIRST MAJESTIC SILVER CORP.
"signed"
Keith Neumeyer,
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.