Business
First Majestic Announces Proposed Sale of The La Parrilla Silver Mine for Up To US$33.5 Million
Vancouver, British Columbia--(Newsfile Corp. - December 7, 2022) - First Majestic Silver Corp. (N...
About this update from First Majestic Silver Corp.
[{"type":"text","content":"First Majestic Announces Proposed Sale of The La Parrilla Silver Mine for Up To US$33.5 MillionVancouver, British Columbia--(Newsfile Corp. - December 7, 2022) - First Majestic Silver Corp. (NYSE: AG) (TSX: FR) (FSE: FMV) (the \"Company\" or \"First Majestic\") is pleased to announce that it has entered into an Asset Purchase Agreement dated December 7, 2022 to sell its 100% owned past producing La Parrilla Silver Mine located in the state of Durango, Mexico to Golden Tag Resources Ltd. (TSXV: GOG)  (\"Golden Tag\") for total consideration of up to US$33.5 million (the \"Transaction\").On closing of the Transaction, First Majestic will receive 143,673,684 Golden Tag shares at a deemed price of CDN$0.19 per share having an aggregate value of US$20.0 million (the \"Consideration Shares\") and representing approximately 40% of the outstanding shares in Golden Tag. First Majestic will receive up to US$13.5 million (see terms below) in the form of three milestone payments in either cash or shares in Golden Tag with the share price and number of shares to be determined upon the anniversary date (where applicable). Milestone:Agreement Terms: (in the amount of): Repayment Payable upon the earlier of (1) 18 months following the closing of the Transaction; and (2) receipt of certain approvals in Mexico.US$2,700,000 CashFirst Deferred Payment Payable upon receipt of a written resource estimate prepared by a qualified person, of (i) 5 million ounces or more of AgEq reserves on La Parrilla, or (ii) 22 million ounces of AgEq measured and indicated resources on La Parrilla.US$5,750,000 Cash or SharesSecond Deferred Payment Payable upon receipt of a written resource estimate prepared by a qualified person, of 12.5 million ounces of AgEq measured and indicated resources in a new zone on La Parrilla, in respect of which no mineral reserves or resources have been identified.US$5,050,000 Cash or Shares The Consideration Shares are subject to a six-month holding period in which 25% of the Consideration Shares will vest semi-annually over a 24-month period (see table below).Restricted from transfer for:Percentage of Consideration Shares restricted as to each release date:6 months from Closing25%12 months from Closing25%18 months from Closing25%24 months from Closing25% Pursuant to a Support Agreement to be entered into at closing, Firs...