First Majestic Silver Corp. (FR) has completed the acquisition of Jerritt Canyon Canada Ltd.
This acquisition from Sprott Mining is concurrent to a US$30 million private placement investment in First Majestic by Eric Sprott, previously announced in a joint news release of First Majestic and Sprott Mining dated March 12, 2021.
Under the acquisition, which took effect on April 30, 2021, First Majestic has acquired all of the issued and outstanding common shares of Jerritt Canyon in exchange for 26,719,727 common shares of First Majestic and 5 million common share purchase warrants at an exercise price of US$20.00 per share for a term of three years.
The US$30 million private placement was completed by Eric Sprott at a price of US$17.59 per share for a total of over 1.7 million common shares.
As a result of Sprott's participation in the transactions, Sprott beneficially owns and controls an aggregate of over 28 million common shares and 5 million warrants, representing approximately 11.3 per cent of First Majestic issued and outstanding common shares on an undiluted basis and 13.0 per cent on a partially diluted basis.
Keith Neumeyer, President and CEO of First Majestic said,
"With this closing, First Majestic adds another cornerstone asset to the portfolio and enhances our operating platform in a world-class mining jurisdiction."
"In the near future, we will be communicating our plan for Jerritt Canyon, which will include ways to further improve productivity and reduce operating costs,"
Sprott acquired the common shares in connection with the transactions for investment purposes.
Sprott has a long-term view of the investment and may acquire additional securities of First Majestic including on the open market or through private acquisitions.
First Majestic is a publicly-traded mining company focused on silver and gold production in Mexico and the United States.
First Majestic Silver Corp. (FR) is down 2.99 per cent and is trading at C$18.49 at 2:53 pm ET.