Business
First Majestic announces friendly acquisition of Silvercrest Mines
NYSE MKT: SVLC  TSX: SVL  FrankFurt : CW5 NYSE: AG  TSX: FR  Frankfu...
About this update from First Majestic Silver Corp.
[{"type":"text","content":"\n\nNYSE MKT: SVLC  TSX: SVL  FrankFurt: CW5\n\nNYSE: AG  TSX: FR  Frankfurt: FMV  Mexico: AG\n\n\n\nVANCOUVER, July 27, 2015 /CNW/ - First Majestic Silver Corp. (\"First Majestic\") and SilverCrest Mines Inc. (\"SilverCrest\") are pleased to announce that the companies 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 SilverCrest for consideration of 0.2769 of a common share of First Majestic (the \"Exchange Ratio\") plus C$0.0001 in cash per SilverCrest common share. The offer implies a value of C$1.30 per SilverCrest share based on the closing price of First Majestic's common shares on the Toronto Stock Exchange (\"TSX\") on July 24, 2015. The offer represents a premium of approximately 37% to SilverCrest's 30-day volume-weighted average price (\"VWAP\") on the TSX for the period ending July 24, 2015 and a 35% premium to SilverCrest's previous closing price. The transaction will be implemented by way of a plan of arrangement (the \"Arrangement\") under the Business Corporations Act (British Columbia). In addition, shareholders of SilverCrest will receive shares in a newly formed company (\"New SilverCrest\") which will hold certain exploration assets currently held by SilverCrest and First Majestic.\n\nBENEFITS TO FIRST MAJESTIC SHAREHOLDERS\n\n\nEnhances First Majestic's leading position in Mexico, one of the world's most prolific silver and gold regions \nAccretive to First Majestic's net asset value per share, reserves and total resources per share and production per share \nSilverCrest's Santa Elena Mine will be First Majestic's sixth producing silver mine adding further growth potential to First Majestic's portfolio of Mexican projects \nStrengthens First Majestic's balance sheet by adding approximately C$30 million in cash and further enhances the working capital position \nProvides operational and production synergies with the potential for additional cost cutting \nFurther diversifies production and cash flow across a robust portfolio of producing mines \n\nBENEFITS TO SILVERCREST SHAREHOLDERS\n\n\nProvides SilverCrest shareholders with a highly attractive premium to current market price \nOpportunity to participate in a leading silver producer through an all-share t...