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Goldplay Signs LOI to Acquire the Plomosas Silver Project from First Majestic Silver Corp.
Goldplay Signs LOI to Acquire the Plomosas Silver Project from First Majestic Silver Corp....
About this update from Gr Silver Mining Ltd.
[{"type":"text","content":"\n\n\n\nGoldplay Signs LOI to Acquire the Plomosas Silver Project from First Majestic Silver Corp.\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nVANCOUVER, Jan. 7, 2020\n\n\n\nVANCOUVER, Jan. 7, 2020 /CNW/ - Goldplay Exploration Ltd. (TSXV: GPLY, FRANKFURT: GPE, OTCQB: GLYXF) (\"Goldplay\" or the \"Company\"), is pleased to announce that it has entered into a non-binding Letter of Intent (\"LOI\") with First Majestic Silver Corp. (NYSE: AG, TSX: FR, FRANKFURT: FMV) (\"First Majestic\"), pursuant to which it proposes, through a wholly owned Mexican subsidiary, to acquire 100% of the issued and outstanding shares of First Majestic's wholly owned Mexican subsidiary, Minera La Rastra S.A. de C.V. (\"Minera La Rastra\"). Minera La Rastra owns the past producing Plomosas Silver Project, including 8,514 ha of concessions with significant exploration potential in Sinaloa, Mexico (\"Plomosas Project\"), (Figure 1). \n\nThe definitive terms of the transaction are subject to negotiation and are expected to include: (i) a $100,000 cash payment to First Majestic; (ii) the grant of a 2% net smelter return (NSR) royalty to First Majestic on the Plomosas Project with half of the NSR (i.e., 1% NSR) being subject to a buy-back option for US$1,000,000; and (iii) the issuance to First Majestic of that number of common shares of Goldplay as is equal to 19.9% of the total issued common shares of Goldplay (calculated after giving effect to the issuance of such shares)(the \"Purchase Shares\"). It is anticipated that the Purchase Shares will be subject to a voluntary hold period such that 1/8th of the total number of Purchase Shares will be released from such voluntary hold period every 3 months after the date of closing. It is also expected that First Majestic will enter into a voting trust agreement with Goldplay pursuant to which it will agree to vote the Purchase Shares in favour of management's recommendations on routine matters at any annual general or special meeting of shareholders for a period of two years after the closing. It is also a binding term of the LOI tha...