First Majestic Acquires Orko Silver Corp

First Majestic Silver Corp. (TSX:FR, NYSE:AG) and Orko Silver Corp (TSXV:OK) announced that they have entered into a definitive agreement in which First Majestic will acquire all of the issued and outstanding common shares of Orko for consideration of 0.1202 of a common share of First Majestic plus $0.0001 in cash per Orko common share.

As quoted in the press release:

The offer implies a value of C$2.72 per Orko share based on the closing prices of both First Majestic and Orko’s common shares on the Toronto Stock Exchangeand TSX Venture Exchange, respectively, on December 14, 2012. The offer represents a premium of approximately 69% to Orko’s 30-day volume-weighted average price for the period ending December 14, 2012.

First Majestic’s President and CEO, Keith Neumeyer, said:

We believe this transaction provides an exceptional opportunity for the shareholders of both companies. Orko is an excellent strategic fit within First Majestic, further strengthening our presence in Mexico by providing another high quality development project to our existing asset portfolio in an area that we are already very familiar with. Orko shareholders stand to realize a substantial premium and to capitalize on the track record of value creation that First Majestic brings.

To view the whole press release, click here.