U.S. Markets closed

Blog Exposure - First Majestic Silver Announces Primero Mining Corp. Acquisition; Restructures Stream Deal with Wheaton Precious Metals

Stock Monitor: Wheaton Precious Metals Post Earnings Reporting

LONDON, UK / ACCESSWIRE / January 17, 2018 / Active-Investors.com has just released a free research report on First Majestic Silver Corp. (NYSE: AG) ("First Majestic"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=AG as the Company's latest news hit the wire. On January 12, 2018, the Company, which is a mining organization focused on growing primary silver production in Mexico, announced that it has entered into a definitive arrangement agreement, pursuant to which it would acquire all the issued and outstanding shares of Primero Mining Corp. ("Primero"). Under the terms of the agreement, the issued and outstanding common shares of Primero would be exchanged on the basis of 0.03325 of First Majestic common share. Register today and get access to over 1000 Free Research Reports by joining our site below:


Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, First Majestic Silver most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:



The WPM Arrangement

First Majestic made a concurrent deal, in addition to the Primero Agreement, where it announced that it has entered into an agreement with Wheaton Precious Metals International Ltd, a wholly-owned subsidiary of Wheaton Precious Metals Corp. (NYSE: WPM) ("WPM") which is one of the largest pure silver and gold streaming Company. Under the terms of the agreement, the current silver streaming interest at Primero's San Dimas silver-gold mine, which was held by WPM, would be terminated and First Majestic and WPM would enter into a new stream arrangement, on the basis of 25% of gold eq. production at San Dimas with ongoing payments of $600 per gold eq. ounce delivered under the agreement.

Moreover, WPM is entitled to receive 20.92 million common shares of First Majestic with an aggregate value of $151 million. The New Stream is expected to deliver a significant reduction in the amount of payable metal in comparison to the current stream, which may deliver greater free cash flow generation at San Dimas.

Details of the Arrangement

Primero currently operates the 100% owned San Dimas silver-gold mine in Durango, Mexico, which is a premier low-cost asset with over 100 years of mine production history. Along with First Majestic's existing six operating silver mines in Mexico, the combined Company is expected to lead the Mexican silver production market with an annualized expected silver production of 27 million - 30 million silver eq. ounces.

According to the transaction summary, First Majestic will issue approximately 6.42 million common shares to Primero's shareholders. Post the completion of the arrangement, WPM and current Primero's shareholders will own approximately 11% and 3% of First Majestic issued and outstanding common shares.

First Majestic added that the amounts outstanding under Primero's existing revolving credit facility and costs related to the closing of the Arrangement, totaling about $120 million, would be funded with a combination of the Company's current cash on hand, that is, $118 million as of December 31, 2017; $150 million in new credit facilities; and cash on hand at Primero.

Company Growth Prospects

Prior to the announcement, on January 09, 2018, First Majestic announced that it completed over 156,500 meters of diamond drilling in 2017, while it also acquired El Gachi property and the option agreement to explore and acquire the Los Hernandez property, close to the Santa Elena properties. Post a successful exploration run in 2017, the Company stated that it intends to continue with an aggressive exploration budget in 2018, with an estimated 183,000 meters of planned drilling across the six producing mines and the Plomosas Silver project.

Stock Performance Snapshot

January 16, 2018 - At Tuesday's closing bell, First Majestic Silver's stock climbed 8.25%, ending the trading session at $7.35.

Volume traded for the day: 8.35 million shares, which was above the 3-month average volume of 2.63 million shares.

Stock performance in the previous three-month period – up 1.10%; and year-to-date - up 9.05%

After yesterday's close, First Majestic Silver's market cap was at $1.22 billion.

Price to Earnings (P/E) ratio was at 262.50.

The stock is part of the Basic Materials sector, categorized under the Silver industry.


Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

A-I has not been compensated; directly or indirectly; for producing or publishing this document.


The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email info@active-investors.com. Rohit Tuli, a CFA® charter-holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.


A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.


This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.


For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@active-investors.com

Phone number: 73 29 92 6381

Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active-Investors