MAG Silver Underwriters to Buy Shares for Gross Proceeds of US$65 Million

MAG Silver Corp. (TSX:MAG,NYSEMKT:MVG) announced that it’s entered into an agreement under which a syndicate of underwriters will purchase 8,905,000 common shares of the company on a bought-deal basis. Total gross proceeds will come to US$65,006,500.
The offering is expected to close on or about March 1, 2016 and is subject to customary closing conditions.
As quoted in the press release:

The Company will also grant to the Underwriters an over-allotment option (the “Over-Allotment Option”) to purchase up to 1,335,750 additional Common Shares (the “Over-Allotment Shares”). The Over-Allotment Option will be exercisable for a period of 30 days following closing.
The Company intends to file a preliminary prospectus supplement on February 22, 2016 (the “Preliminary Supplement”) to its short form base shelf prospectus dated January 19, 2016 (the “Base Shelf Prospectus”). The Company intends to file a final prospectus supplement (the “Final Supplement” and, together with the Preliminary Supplement, the “Supplements”) to its Base Shelf Prospectus on or about February 23, 2016. The Supplements will be filed with the securities regulatory authorities in each of the provinces of Canada except Quebec. The Supplements will also be filed with the U.S. Securities and Exchange Commission (“SEC”) as part of a registration statement on Form F-10 in accordance with the Multijurisdictional Disclosure System established between Canada and the United States.
The Company intends to use the net proceeds of the Offering (i) to fund exploration and development expenditures at the Juanicipio Project and (ii) for working capital and general corporate purposes.

Click here to read the full MAG Silver Corp. (TSX:MAG,NYSEMKT:MVG) press release.