FIRST MAJESTIC SILVER CORP. is pleased to announce it has filed an updated technical report in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects for its Santa Elena SilverGold Mine in Sonora, Mexico. The report also includes positive results of a Pre-Feasibility Study completed for its 100% owned Ermitaño Project which is located only four kilometres east of the Santa Elena ...

FIRST MAJESTIC SILVER CORP. (NYSE: AG) (TSX: FR) (the "Company" or "First Majestic") is pleased to announce it has filed an updated technical report in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects for its Santa Elena SilverGold Mine in Sonora, Mexico. The report also includes positive results of a Pre-Feasibility Study ("PFS") completed for its 100% owned Ermitaño Project which is located only four kilometres east of the Santa Elena processing plant. The Company has filed the Technical Report on its website (www.firstmajestic.com) under the Reserves and Resources section and on SEDAR (www.sedar.com) under First Majestic's issuer profile. All amounts are in U.S. dollars unless stated otherwise.

UPDATED MINERAL RESERVE & RESOURCE ESTIMATES FOR SANTA ELENA
(compared to Mineral Reserve and Resource estimates on December 31, 2020)

  • Proven and Probable Mineral Reserves ("P&P") increased 59% to 51.0 million silver equivalent ounces consisting of 12.6 million ounces of silver and 418.4 thousand ounces of gold. Average P&P grades increased 30% to 314 AgEq g/t (78 g/t silver and 2.58 g/t gold)
  • Measured and Indicated Mineral Resources ("M&I") increased 7% to 69.2 million silver equivalent ounces consisting of 18.9 million ounces of silver and 557 thousand ounces of gold. Average M&I grades increased 8% to 355 AgEq g/t (97 g/t silver and 2.85 g/t gold)
  • Inferred Resources decreased 13% to 62.4 million silver equivalent ounces consisting of 16.2 million ounces of silver and 490 thousand ounces of gold. Average Inferred grades increased 6% to 310 AgEq g/t (80 g/t silver and 2.43 g/t gold)

PRE-FEASIBILITY STUDY HIGHLIGHTS

  • Pre-tax NPV5% of $133.7 million
  • Pre-tax IRR of 54%
  • After-tax NPV5% of $64.8 million
  • After-tax IRR of 34%
  • Life of mine ("LOM") of seven years, based only on P&P Reserves, extending the life of mine at Santa Elena including the Ermitaño Project until 2027 producing an estimated 10.3 million ounces of silver and 396 thousand ounces of gold
  • After-tax payback of 44 months, or 3.7 years, as of June 2021
  • LOM consolidated average cash costs at the Santa Elena mining complex is estimated at $105 per tonne, including royalties and selling costs

"We are very excited to deliver this updated Reserves and Resource statement for our Santa Elena operation which includes for the first time, the addition of Mineral Reserves at our Ermitaño project located only four kilometers away from the Santa Elena processing plant," stated Keith Neumeyer, President and CEO. "I am also very pleased to report that we celebrated Ermitaño's first doré pour from development stockpiles at the Santa Elena mill in early November. Ore production from this important new mine is anticipated to ramp up throughout 2022 and into 2023. I would like to congratulate our exploration, operation and technical services teams for their hard work and dedication over the past six years to prepare Santa Elena for its next phase of production growth."

Mr. Neumeyer continued, "I am also pleased to welcome Gonzalo Mercado to the First Majestic team as Vice-President of Exploration. Gonzalo's wealth of exploration knowledge and industry expertise make him a valuable addition to our team and I look forward to working with him as we continue to grow the Company."

PFS OVERVIEW

The financial analysis of Santa Elena considers only revenue from Proven and Probable Mineral Reserves. The analysis considers current and projected costs incurred at the Santa Elena mine, processing plant, plus existing contractor quotes for estimating costs for development in the Santa Elena mine and at the Ermitaño project.

A general financial summary for Santa Elena, which includes the Santa Elena mine, the Ermitaño project, and reclaiming of the remaining leach pad material is provided in Table 1 Metal prices assumptions used to calculate the economic parameters below were $22.50/oz for silver and $1,700/oz for gold.

Table 1: Santa Elena Financial Summary

Item Units Total
Net Revenue $M 884.6
Total Costs (excluding taxes) $M (719.4)
Net Profit Before Tax $M 165.2
Net Profit After Tax (37.5%) $M 85.0
NPV Before Tax (DCFBT @ 5%) $M 133.7
NPV After Tax (DCFAT @ 5%) (37.5%) $M 64.8
IRR Before Tax % 54%
IRR After Tax (37.5%) % 34%
Maximum Cash Outlay $M (60.4)
Payback (discounted, after tax from June 2021) months 44

 

The sensitivity analyses completed shows the relative strength of the project under changes to commodity prices, which along with metallurgical recoveries, impact the financial performance of the mine complex more so than changes to operating or capital cost estimates.

Table 2 summarise the sensitivity to the after-tax net present value due to changes in the applied discount rate.

Table 2: Project Sensitivity to Silver and Gold Price - NPV @ 5% $M (After Tax)

NPV ($M)
After Tax
Silver Price ($/oz Ag) and Gold Price ($/oz Au)
Discount 1,550 Au 1,600 Au 1,650 Au 1,700 Au 1,750 Au 1,800 Au 1,850 Au
Rate 19.50 Ag 20.50 Ag 21.50 Ag 22.50 Ag 23.50 Ag 24.50 Ag 25.50 Ag
Base Case
3% 22.5 39.2 55.9 72.3 88.8 105.3 121.8
5% 17.4 33.3 49.2 64.8 80.5 96.2 111.8
7% 12.7 28.0 43.1 58.0 72.9 87.8 102.7
10% 6.4 20.8 34.9 48.8 62.7 76.7 90.6

 
The impact to the after-tax IRR for each of the revenue scenarios are also summarised in Table 3. The sensitivity demonstrates that even at the lower commodity prices scenario, Santa Elena demonstrates positive IRR.

Table 3: IRR Project Sensitivity (After Tax)

IRR (%)
After Tax
Silver Price ($/oz Ag) and Gold Price ($/oz Au)
1,550 Au 1,600 Au 1,650 Au 1,700 Au 1,750 Au 1,800 Au 1,850 Au
19.50 Ag 20.50 Ag 21.50 Ag 22.50 Ag 23.50 Ag 24.50 Ag 25.50 Ag
IRR 13% 20% 27% 34% 41% 48% 55%

 
MINERAL RESOURCE & MINERAL RESERVE ESTIMATES

The Mineral Resources were classified into Measured, Indicated, or Inferred categories based on the confidence in the geological interpretation and models, the confidence in the continuity of metal grades, the sample support for the estimation and reliability of the sample data, and on the presence of underground mining development providing detailed mapping and production channel sample support.

The Mineral Resource estimates for Santa Elena and Ermitaño are summarized in Table 4 and Table 5 using the silver-equivalent (Ag-Eq) cut-off grades appropriate for the mining method assigned to each domain, and an effective date of June 30, 2021. Measured and Indicated Mineral Resources are reported inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

Table 4: Santa Elena Silver/Gold Mine Mineral Resource Estimates, Measured and Indicated Category
(Effective date June 30, 2021)

Project Domain Category Mineral Type Tonnage
k tonnes

Grades


Metal Content 
Ag (g/t) Au (g/t)  Ag-Eq (g/t)   Ag (k Oz)  Au (k Oz)
Ag-Eq (k Oz)
Santa Elena Main Vein Measured Sulphides           485               102 1.51                 212          1,590 24               3,310
Alejandras Measured Sulphides           225               233 2.55                 420          1,690 19               3,040
America Measured Sulphides           139               244 1.73                 370          1,090 8               1,660
Ermitaño  Ermitaño Measured Sulphides             58                 21 4.00                 408                40 8                   770
ALL Total Measured   Sulphides           907               151 1.96                 300          4,410 57               8,780
Santa Elena Main Vein Indicated Sulphides       1,340                 92 1.37                 193          3,980 59               8,310
Alejandra Indicated Sulphides           270               207 2.10                 361          1,800 18               3,130
Americas Indicated Sulphides           252               281 1.22                 371          2,280 10               3,010
Tortuga Indicated Sulphides           110               118 2.52                 303             420 9               1,070
Heap Leach Heap Leach Pad Indicated Oxides Spent Ore           283                 31 0.56                   66             280 5                   600
Ermitaño Ermitaño and N Splay Indicated Sulphides       1,936                 69 5.10                 563          4,310 318             35,060
Ermitaño Stockwork Indicated Sulphides           653                 42 1.86                 222             880 39               4,660
Intermedias Indicated Sulphides           273                 57 4.49                 491             500 39               4,300
Other Minor Veins Indicated Sulphides             39                 17 1.85                 199                20 2                   250
ALL Total Indicated   All Mineral Types       5,157                 87 3.01                 364       14,470 499             60,390
ALL Total Measured & Indicated All Mineral Types       6,064                 97 2.85 355       18,880 557             69,170

 

Table 5: Santa Elena Silver/Gold Mine Mineral Resource Estimates, Inferred Category (Effective date June 30, 2021)

Project Domain  Category Mineral Type Tonnage
k tonnes

Grades


Metal Content 


Ag 
(g/t)

Au
(g/t)
 Ag-Eq
(g/t) 
 Ag
(k Oz) 
Au
(k Oz)
Ag-Eq
(k Oz)
Santa Elena Main Vein Inferred Sulphides           569                 68 1.08                 148          1,250 20               2,700
Alejandras Inferred Sulphides           372               185 1.84                 320          2,210 22               3,820
America Inferred Sulphides           213               304 1.02                 379          2,080 7               2,600
Tortuga Inferred Sulphides             28                 74 0.94                 143                70 1                   130
Ermitaño Ermitaño and N Splay Inferred Sulphides       2,837                 55 2.82                 328          5,060 257             29,950
Ermitaño Stockwork Inferred Sulphides           660                 53 1.77                 224          1,120 38               4,760
Intermedias Inferred Sulphides           465                 74 3.44                 407          1,110 51               6,090
Other Minor Veins Inferred Sulphides           666                 35 1.90                 219             750 41               4,680
Soledad Inferred Sulphides           444               176 3.73                 538          2,520 53               7,670
ALL Total Inferred   Sulphides       6,254                 80 2.43                 310       16,170 490             62,400

 

(1) Mineral Resource estimates are classified in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves, whose definitions are incorporated by reference into NI 43-101.

(2) The Mineral Resource estimates are based on internal estimates prepared as of June 30, 2021. The information provided was reviewed and prepared by Phillip Spurgeon, P.Geo., a First Majestic employee.

(3) Silver-equivalent grade is estimated considering metal price assumptions, metallurgical recovery, and the metal payable terms.

Ag-Eq = Ag Grade + (Au Grade x Au Recovery x Au Payable x Au Price) / (Ag Recovery x Ag Payable x Ag Price).

(4) Metal prices used in the Mineral Resources estimates were $26.00/oz Ag and $1,850/oz Au.

(5) Metallurgical recovery was 92.7% for silver and 95.5% for gold for Santa Elena and the heap leach pad. For Ermitaño, the metallurgical recovery used was 72.0% for silver and 98.0% for gold.

(6) Metal payable used was 99.85% for silver and 99.80% gold.

(7) The cut-off grade used to constrain the Mineral Resource estimate was 95 g/t Ag-Eq for all Santa Elena mine domains and 70 g/t Ag-Eq for the heap leach pad. The cut-off grade used for the Ermitaño zone domains was 135 g/t Ag-Eq. The cut-offs used were based on actual and budgeted operating and sustaining costs.

(8) Tonnage is expressed in thousands of tonnes; metal content is expressed in thousands of ounces.

(9) Totals may not add up due to rounding.

(10) Measured and Indicated Mineral Resources are reported inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

The Mineral Reserves estimation process consists of converting Mineral Resources into Mineral Reserves by identifying material that exceeds the mining cut-off grades while conforming to specified geometrical constraints determined by the applicable mining method and applying modifying factors such as mining dilution and mining recovery factors. If the Mineral Resources comply with the previous constraints, Measured Resources could be converted to Proven Reserves and Indicated Resources could be converted to Probable Reserves, and, in some instances, Measured Resources could be converted to Probable Reserves if any or more of the modifying factors reduces the confidence of the estimates.

The Mineral Reserves for the Santa Elena mining complex are presented in Table 6.

Table 6: Santa Elena Consolidated Mineral Reserves Statement (Effective Date June 30, 2021)

Category Mineral Type

Tonnage
(kt)

Grade Metal Content
Ag
(g/t)
Au
(g/t)
Ag-Eq
(g/t)
Ag
(k Oz)
Au
(k Oz)
Ag-Eq
(k Oz)

         4,330
Santa Elena Proven Oxides + Sulphides           640            120          1.23           210          2,460           25.4
Ermitaño Proven Sulphides             59              16          3.11           314               30             5.9             600
Total Proven Oxides + Sulphides           699            111          1.39           219          2,490           31.3          4,930
Santa Elena Probable Oxides + Sulphides        1,289            120          1.24           210          4,960           51.2          8,710
Ermitaño Probable Sulphides        2,775              54          3.71           412          4,850         330.9        36,750
Leach Pad Probable Oxides Spent Ore           283              31          0.56             72             280             5.1             650
Total Probable Oxides + Sulphides        4,347              72          2.77           330        10,090         387.2        46,110
Santa Elena P&P Oxides + Sulphides        1,929            120          1.24           210          7,420           76.6        13,030
Ermitaño P&P Sulphides        2,835              54          3.69           410          4,880         336.7        37,340
Leach Pad P&P Oxides Spent Ore           283              31          0.56             72             280             5.1             650
Total Proven & Probable Oxides + Sulphides        5,047              78          2.58           314        12,580         418.4        51,020

 
(1) Mineral Reserves have been classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Definition Standards on Mineral Resources and Mineral Reserves, whose definitions are incorporated by reference into NI 43-101.

(2) The Mineral Reserves statement provided in the table above is based on internal estimates prepared as of June 30, 2021. The information provided was prepared and reviewed under the supervision of Ramon Mendoza Reyes, PEng, and a Qualified Person ("QP") for the purposes of NI 43-101.

(3) The cut-offs were estimated considering metal price assumptions, metallurgical recovery for the corresponding mineral type/mineral process and the metal payable of the selling contract.

a) Silver-equivalent grades were estimated for Santa Elena underground mine and the Leach Pad material.

b) Cut-off value was estimated for the Ermitaño project material.

c) Metal prices considered for Mineral Reserves estimates were $24.00 /oz Ag and $1,700.00 /oz Au.

d) Other key assumptions and parameters include: Metallurgical recoveries; metal payable for silver and gold; direct mining and haulage costs, mill feed, process and treatment costs, sustaining costs and indirect costs including general and administration costs and are different for each deposit as described in tables 15-10, 15-11 and 15-12 of the Technical Report.

(4) A two-step constraining approach has been implemented to estimate reserves for each mining method in use: A General Cut-Off Grade (GC) was used to delimit new mining areas that will require development of access, infrastructure, and all sustaining costs. A second Incremental Cut-Off Grade (IC) was considered to include adjacent mineralized material which recoverable value pays for all associated costs, including but not limited to the variable cost of mining and processing, indirect costs, treatment, administration costs and plant sustaining costs but excludes the access development assumed to be covered by the block above the GC grade.

(5) Modifying factors for conversion of resources to reserves include consideration for planned dilution due to geometric aspects of the designed stopes and economic zones, and additional dilution consideration due to unplanned events, materials handling and other operating aspects. Mineable shapes were used as geometric constraints.

(6) Tonnage is expressed in thousands of tonnes; metal content is expressed in thousands of ounces. Metal prices and costs expressed in USD.

(7) Numbers have been rounded as required by reporting guidelines. Totals may not sum due to rounding.

PROCESSING & RECOVERY METHODS

To date, the Santa Elena processing plant processes a blended feed consisting of high-grade underground mineralized material and spent ore from the existing heap leach pad. The processing plant has been successfully operating for several years and has continuously improved silver and gold metallurgical recoveries. The process is based on cyanide tank leaching and Merrill-Crowe smelting of fine-ground ore to produce silver-gold doré bars. The nominal plant capacity is for the processing of 3,000 tpd with the possibility for higher throughput rates depending on ore hardness, targeted final grind and leaching residence time. Typical metal recoveries for the Santa Elena mineralized material ranged from 91% to 94% for silver and 94% to 97% for gold from the combination of run-of-mine production from the underground mine and the leach pad material.

With the introduction of mineralized material from Ermitaño, starting with industrial trials in Q4 2021 and commercial production in 2022, the plant is expected to continue to process Santa Elena blended material in campaigns alternating with mineralized material from Ermitaño. There are significant differences between these two ores in hardness and metallurgical performance at different grinding sizes. To achieve optimum levels of metal recoveries and the corresponding maximum metal production, the Santa Elena ore will be processed at higher throughput rates than the Ermitaño ore during their corresponding production campaigns. Average operating throughput targets are 3,350 and 2,350 tpd for Santa Elena and Ermitaño, respectively.

The process plant is mostly built as a single train with the crushing area split from the remaining areas and connected through a belt conveyor to transfer the crushed product to the fine stockpiles. The current leaching plant includes a grinding ball mill, one Outotec HIG-Mill, leaching tanks, three counter-current decantation or washing tanks, a previously processed leach-pad, a belt-filter facility and a filtered-tailings storage facility. The processing plant is planned to be modified with the commissioning of a new filter-press, an additional leaching tank and a fourth CCD thickener in the fourth quarter of 2022.

Due to the high purity of the Santa Elena doré (>98% silver and gold), no penalties are applied by the refineries for the presence of heavy metals. This purity is expected to be maintained after processing the Ermitaño ore.

CAPITAL & OPERATING COSTS

The Santa Elena mine has been under First Majestic operation since October 2015. The sustaining capital expenditures are budgeted on an as-required basis, established on actual conditions at the mine and the processing plant infrastructure. The LOM plan includes estimates for sustaining capital expenditures for the mining and processing activities required. Sustaining capital expenditures will mostly be allocated for on-going development, infill drilling, mine equipment rebuilding, major equipment overhauls or replacements, plant maintenance and on-going refurbishing, and for tailings management facilities expansion as needed.

The amount of exploration conducted to find new targets, with the objective of replacing and/or expanding the Mineral Resources will be dependent on the success of exploration and diamond drilling programs. Sustaining capital is focused on maintaining current operational capacities, plant and equipment, while expansionary capital is focussed on expanding new sources of mineralization.

The Ermitaño project continues development towards the western limit of the mineralized zone, which is planned to be mined at the beginning of 2022. The mining activities are being completed by an experienced contractor that also operates at the Santa Elena mine. Estimated expenses for development are based on existing contracts as it is proposed that contractors continue carrying out all mine waste development.

Included in the capital expense is an allocation for infill exploration drilling to support the LOM plan presented in the Technical Report. Table 7 presents the consolidated summary of the capital expenditures for Santa Elena and Ermitaño.

Table 7: Santa Elena Consolidated Capital Costs Summary

Type Units Total 2021 2022 2023 2024 2025 2026 2027
Shared Capital (Surface) $ M $23.7 $1.1 $22.4 $0.2 - - - -
Mining Development $ M $70.0 $18.0 $28.4 $19.8 $3.4 $0.4 - -
Property, Plant & Equipment $ M $100.8 $20.6 $27.6 $21.4 $8.5 $10.3 $11.1 $1.3
Total Capital Costs $ M $194.5 $39.7 $78.3 $41.5 $12.0 $10.7 $11.1 $1.3

 
The consolidated average cash costs are estimated at $105/tonne, including royalties and selling costs. Operating costs exclude the streaming impacts on the Santa Elena revenue, where approximately 6.3% of the revenue from the Santa Elena mine, including the leach pad, is paid to a third party. Revenue from the Ermitaño mine is subject to a 4% NSR royalty. Estimated royalty payments are included in the operating cost summary as presented in Table 8 and Table 9.

Table 8: Complex Average Unit Operating Costs

Type $/tonne
Mining Cost $57.6
Processing Cost $39.0
Indirect Costs $2.8
Total Production Cost $99.3
Refining, Selling Costs $0.8
Royalties $4.9
Total Cash Cost $105.1

 

Table 9: Santa Elena Consolidated Annual Operating Costs

Type Units Total 2021 2022 2023 2024 2025 2026 2027
Mining Cost $ M $287.6 $29.5 $67.5 $55.4 $44.5 $36.6 $35.0 $19.2
Processing Costs $ M $194.7 $15.9 $33.2 $33.1 $33.9 $31.2 $29.3 $18.0
Indirect Costs $ M $14.1 $1.1 $2.3 $2.3 $2.3 $2.3 $2.3 $1.5
Total Production Cost $ M $496.3 $46.6 $102.9 $90.8 $80.6 $70.1 $66.6 $38.7
Refining, Selling Costs $ M $4.0 $0.3 $0.8 $0.7 $0.8 $0.7 $0.5 $0.2
Royalties $ M $24.5 $0.6 $3.7 $6.9 $5.9 $3.4 $2.5 $1.5
Total Cash Cost $ M $524.9 $47.6 $107.5 $98.3 $87.3 $74.2 $69.6 $40.4

 
QUALIFIED PERSONS NI 43-101 TECHNICAL REPORT

This news release has been reviewed and approved by Ramón Mendoza Reyes, P.Eng., Vice President of Technical Services and a Qualified Person as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). In addition, the technical information in this news release has also been reviewed and approved by the following Qualified Persons: Phillip J. Spurgeon, P. Geo., Maria Elena Vazquez Jaimes, P. Geo. and Persio Pellegrini Rosario, P. Eng.

APPOINTMENT OF VICE-PRESIDENT OF EXPLORATION

Mr. Gonzalo Mercado is a Professional Geologist, who brings over 20 years of global geological experience to the First Majestic team. Mr. Mercado is a geology graduate from the National University of Tucuman in Argentina and commenced his mining career with Barrick Gold in Argentina. During his career at Barrick, he held the roles of Senior Exploration Geologist, Project Geologist, Country Manager of Geology, Senior Project Manager, as well as time in the Toronto Corporate head office working with the Business Development Group on acquisitions and investor relations. Most recently Mr. Mercado has been the exploration leader for Nevada Gold Mines, a joint venture between Barrick Gold and Newmont Mining, where he was responsible for all exploration activities within Nevada.

ABOUT THE COMPANY

First Majestic is a publicly traded mining company focused on silver and gold production in Mexico and the United States. The Company presently owns and operates the San Dimas Silver/Gold Mine, the Jerritt Canyon Gold Mine, the Santa Elena Silver/Gold Mine and the La Encantada Silver Mine.

FOR FURTHER INFORMATION contact info@firstmajestic.com, visit our website at www.firstmajestic.com or call our toll-free number 1.866.529.2807.

FIRST MAJESTIC SILVER CORP.

"signed"
Keith Neumeyer, President & CEO

Cautionary Note Regarding Forward Looking Statements

This press release contains "forward‐looking information" and "forward-looking statements" under applicable Canadian and U.S. securities laws (collectively, "forward‐looking statements"). These statements relate to future events or the Company's future performance, business prospects or opportunities that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management made in light of management's experience and perception of historical trends, current conditions and expected future developments. Forward-looking statements include, but are not limited to, statements with respect to: the Company's business strategy; future planning processes; commercial mining operations; cash flow; budgets; the timing and amount of estimated future production; ore grades; recovery rates; rates of return; mine plans and mine life; integration of operations; future sales; the future price of silver and other metals; costs of production; costs and timing of development at the Company's projects; estimates of royalty payments; commencement of initial batch test processing at the Santa Elena processing plant; capital projects and exploration activities and the possible results thereof. Assumptions may prove to be incorrect and actual results may differ materially from those anticipated. Consequently, guidance cannot be guaranteed. As such, investors are cautioned not to place undue reliance upon guidance and forward-looking statements as there can be no assurance that the plans, assumptions or expectations upon which they are placed will occur. All statements other than statements of historical fact may be forward‐looking statements. Statements concerning proven and probable mineral reserves and mineral resource estimates may also be deemed to constitute forward‐looking statements to the extent that they involve estimates of the mineralization that will be encountered as and if the property is developed, and in the case of measured and indicated mineral resources or proven and probable mineral reserves, such statements reflect the conclusion based on certain assumptions that the mineral deposit can be economically exploited. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives or future events or performance (often, but not always, using words or phrases such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "forecast", "potential", "target", "intend", "could", "might", "should", "believe" and similar expressions) are not statements of historical fact and may be "forward‐looking statements".

Actual results may vary from forward-looking statements. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results to materially differ from those expressed or implied by such forward-looking statements, including but not limited to: the duration and effects of the coronavirus and COVID-19, and any other pandemics on our operations and workforce, and the effects on global economies and society, risks related to the integration of acquisitions; actual results of exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; commodity prices; variations in ore reserves, grade or recovery rates; actual performance of plant, equipment or processes relative to specifications and expectations; accidents; labour relations; relations with local communities; changes in national or local governments; changes in applicable legislation or application thereof; delays in obtaining approvals or financing or in the completion of development or construction activities; exchange rate fluctuations; requirements for additional capital; government regulation; environmental risks; reclamation expenses; outcomes of pending litigation; limitations on insurance coverage as well as those factors discussed in the section entitled "Description of the Business - Risk Factors" in the Company's most recent Annual Information Form, available on www.sedar.com, and Form 40-F on file with the United States Securities and Exchange Commission in Washington, D.C. Although First Majestic has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

The Company believes that the expectations reflected in these forward‐looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward‐looking statements included herein should not be unduly relied upon. These statements speak only as of the date hereof. The Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/104977

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Early Warning Report Regarding Guanajuato Silver Company Ltd.

This news release is being disseminated by Endeavour Silver Corp. (TSX: EDR, NYSE: EXK) (" Endeavour ") pursuant to National Instrument 62-103 The Early Warning System and Related Take-Over Bid and Insider Reporting Issues in connection with the acquisition by Endeavour of certain securities of Guanajuato Silver Company Ltd. (" GSilver "), a British Columbia corporation with a head office at 578-999 Canada Place, Vancouver, British Columbia, V6C 3E1.

On November 30, 2021, Endeavour acquired 5,750,000 units (" Units ") of GSilver at a purchase price of $0.55 per Unit through a non-brokered private placement (the " Private Placement ") for an aggregate purchase price of $3,162,500. Each Unit consists of one common share (a " Common Share ") of GSilver and one-half of a common share purchase warrant (each whole warrant, a " Warrant "). Each Warrant entitles the holder to purchase one Common Share at a price of $0.75 per Common Share at any time on or before November 30, 2023.

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First Majestic Completes US$230 Million Convertible Senior Notes Offering

First Majestic Silver Corp. (NYSE: AG) (TSX: FR) ("First Majestic" or the "Company") announced today the closing of its previously announced offering of US$200 million aggregate principal amount of 0.375% unsecured convertible senior notes due in 2027 (the "Notes"). The Company also announced the concurrent closing of an additional US$30 million aggregate principal amount of the Notes pursuant to the exercise in full of the over-allotment option granted to the initial purchasers of the Notes. The initial conversion rate for the Notes is 60.3865 common shares ("Shares") per US$1,000 principal amount of Notes, equivalent to an initial conversion price of approximately US$16.56 per Share.

The Company will use a portion of the proceeds of the Offering to complete the repurchase, in separate privately negotiated transactions, of approximately US$125.2 million aggregate principal amount of its outstanding 1.875% convertible senior notes (the "Existing Notes") for payment of approximately US$164.9 million. The Company intends to use the remainder of the net proceeds from the Offering for general corporate purposes, including strategic opportunities.

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Endeavour Silver Intersects High-Grade Silver-Gold Mineralization at its Guanacevi and Bolañitos Operations

Endeavour Silver Corp. (TSX: EDR, NYSE: EXK) is pleased to report continued high-grade drill results from its 2021 exploration program at the Guanacevi Mine in Durango State, Mexico and the Bolañitos Mine in Guanajuato State, Mexico. Exploration drilling is ongoing at both operations and will continue in 2022.

Highlights from Recent Drill Results

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VIDEO — Chris Marcus: I'll be Stunned if Silver is Still Around US$25 in a Year

Chris Marcus: I'll be Stunned if Silver is Still Around US$25 in a Year youtu.be

2021 kicked off on a strong note for silver, which enjoyed widespread attention and a price increase when the "silver squeeze" narrative grabbed mainstream media headlines.

What changed? Speaking to the Investing News Network, Arcadia Economics founder Chris Marcus said although it's turned out to be a historic year for silver, market manipulation has prevented further moves.

Marcus, who is also the author of the book "The Big Silver Short," pointed to comments from Jeff Currie of investment bank Goldman Sachs (NYSE:GS) and Rostin Behnam of the Commodity Futures Trading Commission (CFTC), saying they show how policies have been used to tamp down the price of the white metal.

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Santacruz Silver Reports Third Quarter 2021 Financial Results

Santacruz Silver Reports Third Quarter 2021 Financial Results

Santacruz Silver Mining Ltd. (TSXV: SCZ) ("the Company" or "Santacruz") reports its financial and operating results for the third quarter ("Q3") of 2021. The full version of the consolidated financial statements and accompanying management discussion and analysis ("MD&A") can be viewed on the Company's website at www.santacruzsilver.com or on SEDAR at www.sedar.com. All financial information is prepared in accordance with International Financial Reporting Standards ("IFRS") and all dollar amounts are expressed in thousands of United States dollars, except per unit amounts, unless otherwise indicated.

  • Revenues increased by 55% to $14.6 million during Q3 2021 (Q3 2020 - $9.4 million).

  • Gross profit increased by 190% to $3.7 million during Q3 2021 (Q3 2020 - $1.3 million).

  • On October 13, 2021, the Company announced it had entered into a definitive share purchase agreement with Glencore plc whereby Santacruz has the right to acquire a portfolio of Bolivian silver-base metal assets from Glencore plc.

Carlos Silva, CEO of Santacruz, stated; "We continue to increase our mine production and revenue for the third and fifth consecutive quarter respectively. Production costs were impacted as a result of a Mexican labour reform that came into effect during the quarter. This labour reform required the Company to recognize certain labour liability accruals for their employees, including but not limited to vacation, holiday bonuses, annual bonuses, savings funds, and seniority departure payments which totaled approximately $1.3 million. In addition, a non-recurring charge to administrative expenses of $0.4 million related to severance payments resulting from the decision to place the Rosario mine on care and maintenance, various non-recurring costs associated with the Zimapan Mine acquisition and other non-cash charges also impacted the quarter-end results."

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First Majestic Prices Offering of Convertible Senior Notes

First Majestic Silver Corp. (NYSE: AG) (TSX: FR) ("First Majestic" or the "Company") announced today that it has priced its previously announced offering (the "Offering") of unsecured convertible senior notes due in 2027 (the "Notes"). The Company will issue US$200 million aggregate principal amount of Notes (or US$230 million aggregate principal amount if the over-allotment option is exercised in full). The Notes will be issued at par value. The Company intends to use approximately US$164.9 million of the net proceeds of the Offering to repurchase, in separate privately negotiated transactions, approximately US$125.2 million aggregate principal amount of its outstanding 1.875% convertible senior notes (the "Existing Notes"). The Company intends to use the remainder of the net proceeds from the Offering for general corporate purposes, including strategic opportunities.

The Notes will bear cash interest semi-annually at a rate of 0.375% per annum. The initial conversion rate for the Notes will be 60.3865 common shares ("Shares") per US$1,000 principal amount of Notes, equivalent to an initial conversion price of approximately US$16.56 per Share. The initial conversion rate represents a premium of approximately 35% relative to yesterday's closing market price of the Shares and is subject to adjustment in certain events.

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