First Majestic Announces US$50M Forward Sale Contract on Base Metals
December 19 2012 - 07:30AM
Marketwired
First Majestic Silver Corp. (TSX:FR)(NYSE:AG)(FRANKFURT:FMV)
("First Majestic" or the "Company") is pleased to announce that it
has entered into a US$50 million forward sale contract with Bank of
America Merrill Lynch on a portion of its future lead and zinc
production.
The Company has executed the forward sale contract at fixed
prices of US$1.01 per pound (US$2,236 per metric tonne) for lead
and US$0.96 per pound (US$2,116 per metric tonne) for zinc. The
contract term is valid from January 2013 to June 2016, with a six
month repayment holiday from January to June 2013. The forward sale
of base metals can be repaid with metal from any of First
Majestic's operations and represents approximately 26% of the
Company's total estimated lead production and 33% of its estimated
zinc production over this period. The purpose of this contract is
to fund continuing expansion plans and for general working
capital.
Keith Neumeyer, President and CEO of First Majestic, comments,
"We are pleased to have entered into this agreement to forward sell
a portion of our base metal production from both our Del Toro and
La Parrilla silver mines. Management considers this arrangement to
be very favorable at current market prices and it allows our
treasury to be topped up without having to dilute our shareholders.
Furthermore, First Majestic remains committed to being un-hedged on
its silver production in anticipation of higher silver prices in
the future, while only forward selling a minor portion of our lead
and zinc base metals."
First Majestic is a producing silver company focused on silver
production in Mexico and is aggressively pursuing its business plan
of becoming a senior silver producer through the development of its
existing mineral property assets and the pursuit through
acquisition of additional mineral assets which contribute to the
Company achieving its aggressive corporate growth objectives.
FIRST MAJESTIC SILVER CORP.
Keith Neumeyer, President & CEO
SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION
This news release includes certain "Forward-Looking Statements"
within the meaning of the United States Private Securities
Litigation Reform Act of 1995 and applicable Canadian securities
laws. When used in this news release, the words "anticipate",
"believe", "estimate", "expect", "target", "plan", "forecast",
"may", "schedule" and similar words or expressions, identify
forward-looking statements or information. These forward-looking
statements or information relate to, among other things: the price
of silver and other metals; the accuracy of mineral reserve and
resource estimates and estimates of future production and costs of
production at our properties; estimated production rates for silver
and other payable metals produced by us, the estimated cost of
development of our development projects; the effects of laws,
regulations and government policies on our operations, including,
without limitation, the laws in Mexico which currently have
significant restrictions related to mining; obtaining or
maintaining necessary permits, licences and approvals from
government authorities; and continued access to necessary
infrastructure, including, without limitation, access to power,
land, water and roads to carry on activities as planned.
These statements reflect the Company's current views with
respect to future events and are necessarily based upon a number of
assumptions and estimates that, while considered reasonable by the
Company, are inherently subject to significant business, economic,
competitive, political and social uncertainties and contingencies.
Many factors, both known and unknown, could cause actual results,
performance or achievements to be materially different from the
results, performance or achievements that are or may be expressed
or implied by such forward-looking statements or information and
the Company has made assumptions and estimates based on or related
to many of these factors. Such factors include, without limitation:
fluctuations in the spot and forward price of silver, gold, base
metals or certain other commodities (such as natural gas, fuel oil
and electricity); fluctuations in the currency markets (such as the
Canadian dollar and Mexican peso versus the U.S. dollar); changes
in national and local government, legislation, taxation, controls,
regulations and political or economic developments in Canada,
Mexico; operating or technical difficulties in connection with
mining or development activities; risks and hazards associated with
the business of mineral exploration, development and mining
(including environmental hazards, industrial accidents, unusual or
unexpected formations, pressures, cave-ins and flooding); risks
relating to the credit worthiness or financial condition of
suppliers, refiners and other parties with whom the Company does
business; inability to obtain adequate insurance to cover risks and
hazards; and the presence of laws and regulations that may impose
restrictions on mining, including those currently enacted in
Mexico; employee relations; relationships with and claims by local
communities and indigenous populations; availability and increasing
costs associated with mining inputs and labour; the speculative
nature of mineral exploration and development, including the risks
of obtaining necessary licenses, permits and approvals from
government authorities; diminishing quantities or grades of mineral
reserves as properties are mined; the Company's title to
properties; and the factors identified under the caption "Risk
Factors" in the Company's Annual Information Form, under the
caption "Risks Relating to First Majestic's Business".
Investors are cautioned against attributing undue certainty to
forward-looking statements or information. Although the Company has
attempted to identify important factors that could cause actual
results to differ materially, there may be other factors that cause
results not to be anticipated, estimated or intended. The Company
does not intend, and does not assume any obligation, to update
these forward-looking statements or information to reflect changes
in assumptions or changes in circumstances or any other events
affecting such statements or information, other than as required by
applicable law.
Contacts: First Majestic Silver Corp. 604-688-3033 or Toll Free:
1-866-529-2807 604-639-8873 (FAX)info@firstmajestic.com
www.firstmajestic.com
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