Financing News
First Majestic changes financing to five million units
2005-05-03 16:40 ET - News Release
Mr. Keith Neumeyer reports
FINANCING UPDATE
First Majestic Resource Corp., further to news reported by Stockwatch on March 21, 2005, regarding the brokered private placement offering of six million units of the company at a price of $2.50 per unit, has repriced the units to $2.15 per unit and the will offer up to a maximum of five million units. Each unit will consist of one common share and one-half of one common share purchase warrant, with a full warrant entitling the holder to purchase one additional common share of the company at an exercise price of $2.50 per warrant share for a period of two years after the closing of the offering. The offering is expected to close on or about May 19, 2005. Completion of the offering is subject to receipt by the company of all necessary regulatory approvals. The securities to be issued under the offering will be subject to a four-month hold period.
Jennings Capital Inc. will act as the lead agent for the offering. The agent will receive a cash commission equal to 7 per cent of the gross proceeds raised under the offering. In addition, the company has agreed to issue to the agents at closing, broker warrants entitling the agents, for a period of 24 months from the closing of the offering, to acquire that number of common shares of the company that is equal to 7 per cent of the number of units sold under the offering, exercisable at a price of $2.15 per broker share.
The company plans to use the net proceeds of the offering to advance development and exploration at company's La Parrilla silver mine, the Candamena, Dios Padre and Chalchihuites properties in Mexico.
We seek Safe Harbor.