Alexco Resource Corp. T.AXU

Let's play the 'strategic acquisition' game

[mattbigham]

First Majestic just raised $300 million USD's of which $135 m USD's can be added to their $200m cash position for a total of $335m USD cash for 'strategic opportunities'.
That is roughly $400m CAD for a company that usually does full or mostly stock transaction acquisitions.

AXU is Canada's only pure silver producer and is a junior company and along with another junior (MMG)  that control an entire silver district that is underexplored and in the safest jurisdiction in the world.

Sprott is a major silver bug and so is Neumeyer. Both are Canadian.
Sprott is First Majestic's largest shareholder.
Sprott is Metallic Minerals largest shareholder.
It's hardly a stretch to imagine Sprott,Neumeyer and First Majestic would very much like to and can acquire Alexco (and thereby half of Keno Hill ) for a very decent price in this very low silver price environment,especiallu given the inflation society is experiencing every where but  at the Comex with their manipulated paper  pricing racket.

At 4 million oz of production annually and with the mill designed to produce 5 million oz
 of silver annually that adds 40% to First Majestic's 13 million oz of silver production today.

What is an additional 40% of silver and half of the Keno District worth to $3B MCAP First Majestic?

$3.00 per Alexco share and 0.20 FR.TO share for every Alexco share( Alexco's 5 million oz mill production capacity equals 40% of FR's silver production and 25% of First Majestic's overall Ag Eq production)  is a reasonable price in today's market.

First Majestic could readily create this transaction with funds on hand.
Alexco then goes on to acquire another silver entity with their $450 m windfall and we all become First Majestic shareholders.

Keith has stated he wants to further diversify out of Mexico and become the world's largest silver producer. Keno Hill provides that opportunity at a very reasonable time and price.

The Company intends to use the remainder of the net proceeds from the Offering for general corporate purposes, including strategic opportunities.
Vancouver, British Columbia--(Newsfile Corp. - December 2, 2021
https://www.firstmajestic.com/investors/news-releases/first-majestic-completes-us230-million-convertible-senior-notes-offering

[Heywood_Silvers]

First Majestic is primarily involved in Mexico.  If they had their sights on any acquisition target my guess is it would be Discovery Silver since Discovery is in Mexico and it will one day become the world's largest producing silver mine according to their CEO. Remember back in 2015 when Keith N started the "gold bank" company to pick off junior projects with the idea of

[mattbigham]

I listen to all of Neumeyer's interviews. He's fed up with the lawsuit and the hassles the Mexican  govt have saddled him with. The Jerritt Canyon acquisition signifies that diversification Keith refers to  and has already  begun.

[touareg]

I believe Keith N is a very smart guy and that is why he has started to rebuild FM "outside" of Mexico and intends to continue that strategy.. as it is now becoming unsafe / unstable for foriegn mining companies. The times they are a changing and it seems resource investors need to seriously wise up to what is happening out there in terms of the political and other risks of mining in