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Re: News Releases - Tuesday, April 03, 2012
First Majestic Announces Friendly Acquisition of Silvermex
Resources
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Vancouver, BC, Canada --First Majestic Silver Corp. ("First Majestic")
and Silvermex Resources Inc. ("Silvermex") are pleased to announce that
they have entered into a definitive agreement (the "Arrangement
Agreement") pursuant to which First Majestic has agreed to acquire all
of the issued and outstanding common shares of Silvermex for a
consideration of 0.0355 common shares of First Majestic (the "Exchange
Ratio") and C$0.0001 in cash per common share of Silvermex. The offer
values Silvemex at approximately C$0.60 per share, representing a
premium of approximately 33% to the closing price of Silvermex as at
April 2, 2012 and approximately 43% to the 30 day volume weighted
average price ("VWAP"). The transaction will be implemented by way of
a plan of arrangement (the "Arrangement") under the Business
Corporations Act (British Columbia).
BENEFITS TO FIRST MAJESTIC SHAREHOLDERSBENEFITS TO SILVERMEX
SHAREHOLDERSKeith Neumeyer, President & CEO of First Majestic, stated:
"We believe this transaction provides an excellent opportunity for the
shareholders of both First Majestic and Silvermex. First Majestic
shareholders gain increased exposure to silver and can realize the
significant upside in production and reserves that we believe exists at
La Guitarra, while Silvermex shareholders realize an immediate premium
and can capitalize on the value creation that First Majestic brings
going forward."
Duane Nelson, CEO of Silvermex added: "First Majestic brings the
necessary capital and operational expertise required to accelerate
exploration activities and production growth at our La Guitarra Mine as
well as our other advanced projects. We believe that First Majestic's
proven track record of operational achievements and experience in
Mexico will ensure a successful future for the combined company."
TRANSACTION SUMMARY
Under the terms of the Arrangement, on closing, each Silvermex
shareholder will receive 0.0355 common shares of First Majestic and
C$0.0001 in cash per Silvermex common share. Outstanding Silvermex
options will be exchanged for First Majestic shares with a value equal
to the in-the-money value of the options (based on the Exchange Ratio).
Outstanding Silvermex warrants will be exchanged for First Majestic
shares with a value equal to the in-the-money value of the warrants
(based on the Exchange Ratio) or may be exchanged for equivalent
warrants of First Majestic, at the election of the holder. Pursuant to
the transaction, First Majestic will issue approximately 9.6 million
First Majestic common shares valuing the company at approximately
C$175.4 million based on First Majestic's 30 day VWAP on April 2, 2012.
Following completion of the transaction, the current First Majestic
shareholders will hold approximately 91.7% of the combined company,
while current shareholders of Silvermex will hold approximately 8.3%.
The transaction will be carried out by way of a court-approved plan of
arrangement and will require the approval of at least 66 2/3% of the
votes cast by the shareholders, warrant holders and option holders of
Silvermex voting together as a single class at a special meeting
expected to take place in June 2012. In addition to shareholder and
court approvals, the transaction is subject to applicable regulatory
approvals and the satisfaction of certain other closing conditions
customary in transactions of this nature.
The Arrangement Agreement includes customary provisions, including no
solicitation of alternative transactions, right to match superior
proposals and fiduciary-out provisions. Silvermex has agreed to pay a
termination fee to First Majestic of C$6.14 million upon the occurrence
of certain termination events.
The Board of Directors of Silvermex has unanimously approved the
transaction and is expected to provide a written recommendation that
Silvermex shareholders vote in favour of the transaction in the
information circular to be mailed to shareholders in connection with
the Arrangement. Each of the directors and senior officers of
Silvermex and certain shareholders of Silvermex representing
approximately 21% of the issued and outstanding Silvermex securities
have entered into voting agreements with First Majestic and have agreed
to vote in favour of the transaction at the special meeting of
Silvermex securityholders to be held to consider the Arrangement.
Full details of the Arrangement will be included in a Management
Information Circular to be filed with the regulatory authorities and
mailed to Silvermex securityholders in accordance with applicable
securities laws. Silvermex expects to mail the Management Information
Circular in May 2012.
ADVISORS AND COUNSEL
BMO Capital Markets acted as exclusive financial advisor to First
Majestic and has provided an opinion to the First Majestic Board of
Directors that the consideration to be paid by First Majestic under the
transaction is fair, from a financial point of view, to First Majestic.
GMP Securities L.P., acting as financial advisor to Silvermex, has
provided an opinion to the Board of Directors of Silvermex that, based
upon and subject to the assumptions, limitations, and qualifications in
the opinion, the consideration to be received is fair, from a financial
point of view, to the shareholders of Silvermex. First Majestic's
Canadian, Mexican and US legal counsel are McCullough O'Connor Irwin
LLP, Todd y Asociados S.C. and Clark Wilson LLP respectively.
Silvermex's Canadian and Mexican legal counsel are McMillan LLP and
Urias Romero Y Asociados, S.C. respectively.
CONFERENCE CALL
First Majestic and Silvermex will host a joint conference call and
webcast on Tuesday, April 3, 2012 at 11:30 am Eastern time / 8:30 am
Pacific time for members of the investment community to discuss the
proposed transaction. The call-in details are as follows:
Toll Free Canada & USA: 1-800-319-4610
Outside of Canada & USA: 1-604-638-5340
Toll Free Germany: 0800 180 1954
Toll Free UK: 0808 101 2791
Click on WEBCAST on the First Majestic homepage as a simultaneous audio
webcast of the conference call at www.firstmajestic.com.
The conference call will be recorded and you can listen to an archive
of the conference by calling:
Canada & USA Toll Free: 1-800-319-6413
Outside Canada & USA: 1-604-638-9010
Pin Code: 3928 followed by the # sign
An archived webcast of the conference call will also be available at
www.firstmajestic.com.
ABOUT FIRST MAJESTIC
First Majestic is a producing silver company focused on silver
production in M�xico and is aggressively pursuing its business plan of
becoming a senior silver producer through the development of its
existing mineral property assets and the pursuit through acquisition of
additional mineral assets which contribute to First Majestic achieving
its aggressive corporate growth objectives.
FOR FURTHER INFORMATION contact info@firstmajestic.com, visit our
website at www.firstmajestic.com or contact Todd Anthony, Investor
Relations at 1-866-529-2807.
ABOUT SILVERMEX
Silvermex is a mining company focused in Mexico with a portfolio of
projects ranging from early stage exploration to production.
Silvermex's core asset is the producing La Guitarra silver-gold mine
located in the Temascaltepec Mining District of Mexico.
For more information please visit the Silvermex's website at
www.silvermexresources.com or contact Fiona Grant, Manager, Investor
Relations at 604-682-4004.
ON BEHALF OF THE BOARD OF
FIRST MAJESTIC SILVER CORP.
"Keith Neumeyer"
Keith Neumeyer
President & CEO
ON BEHALF OF THE BOARD OF
SILVERMEX RESOURCES INC.
"Duane Nelson"
Duane Nelson
CEO & Director
SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION
This news release includes certain "Forward-Looking Statements" within
the meaning of the United States Private Securities Litigation Reform
Act of 1995 and applicable Canadian securities laws. When used in this
news release, the words "anticipate", "believe", "estimate", "expect",
"target", "plan", "forecast", "may", "schedule" and similar words or
expressions, identify forward-looking statements or information. These
forward-looking statements or information relate to, among other
things: the price of silver and other metals; the accuracy of mineral
reserve and resource estimates and estimates of future production and
costs of production at our properties; estimated production rates for
silver and other payable metals produced by us, the estimated cost of
development of our development projects; the effects of laws,
regulations and government policies on our operations, including,
without limitation, the laws in Mexico which currently have significant
restrictions related to mining; obtaining or maintaining necessary
permits, licences and approvals from government authorities; and
continued access to necessary infrastructure, including, without
limitation, access to power, land, water and roads to carry on
activities as planned.
These statements reflect the Company's current views with respect to
future events and are necessarily based upon a number of assumptions
and estimates that, while considered reasonable by the Company, are
inherently subject to significant business, economic, competitive,
political and social uncertainties and contingencies. Many factors,
both known and unknown, could cause actual results, performance or
achievements to be materially different from the results, performance
or achievements that are or may be expressed or implied by such
forward-looking statements or information and the Company has made
assumptions and estimates based on or related to many of these factors.
Such factors include, without limitation: fluctuations in the spot and
forward price of silver, gold, base metals or certain other commodities
(such as natural gas, fuel oil and electricity); fluctuations in the
currency markets (such as the Canadian dollar and Mexican peso versus
the U.S. dollar); changes in national and local government,
legislation, taxation, controls, regulations and political or economic
developments in Canada, Mexico; operating or technical difficulties in
connection with mining or development activities; risks and hazards
associated with the business of mineral exploration, development and
mining (including environmental hazards, industrial accidents, unusual
or unexpected formations, pressures, cave-ins and flooding); risks
relating to the credit worthiness or financial condition of suppliers,
refiners and other parties with whom the Company does business;
inability to obtain adequate insurance to cover risks and hazards; and
the presence of laws and regulations that may impose restrictions on
mining, including those currently enacted in Mexico; employee
relations; relationships with and claims by local communities and
indigenous populations; availability and increasing costs associated
with mining inputs and labour; the speculative nature of mineral
exploration and development, including the risks of obtaining necessary
licenses, permits and approvals from government authorities;
diminishing quantities or grades of mineral reserves as properties are
mined; the Company's title to properties; and the factors identified
under the caption "Risk Factors" in the Company's Annual Information
Form, under the caption "Risks Relating to First Majestic's Business".
Investors are cautioned against attributing undue certainty to
forward-looking statements or information. Although the Company has
attempted to identify important factors that could cause actual results
to differ materially, there may be other factors that cause results not
to be anticipated, estimated or intended. The Company does not intend,
and does not assume any obligation, to update these forward-looking
statements or information to reflect changes in assumptions or changes
in circumstances or any other events affecting such statements or
information, other than as required by applicable law.
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Copyright (c) 2012 FIRST MAJESTIC SILVER CORP. (TSX: FR) All rights
reserved. For more information visit our website at
http://www.firstmajestic.com/ or send mailto:investor@firstmajestic.com
Message sent on Tue Apr 3, 2012 at 8:32:03 AM Pacific Time
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VanEck Vectors Global Alternative Energy ETF
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PRODUCTEUR |
CODE : FR.TO |
ISIN : CA32076R1029 |
CUSIP : 32076R1029 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
First Majestic est une société de production minière d'argent basée au Canada. First Majestic est productrice d'argent, d'or, de plomb et de zinc au Mexique, et détient divers projets d'exploration au Canada et au Mexique. Ses principaux projets en production sont LA PARRILLA SILVER MINE, LA ENCANTADA (FIRST MAJESTIC SILVER), SAN MARTIN et LA ENCANTADA SILVER MINE au Mexique et ses principaux projets en exploration sont REAL DE CATORCE, DEL TORO et CUITABOCA au Mexique et PITT ISLAND, PINCOURT, DOMPIERRE et DESJARDINS au Canada. First Majestic est cotée au Canada, aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 465,4 millions (340,6 millions US$, 313,9 millions €). La valeur de son action a atteint son plus bas niveau récent le 02 novembre 2001 à 0,01 , et son plus haut niveau récent le 17 mai 2024 à 9,99 . First Majestic possède 47 442 200 actions en circulation. |