MAG Silver Closes C$23 Million Common Share Flow-Through Private Placement
MAG Silver Corp. has successfully completed a bought deal private placement, issuing 969,450 common flow-through shares at C$23.75 each, raising total gross proceeds of C$23,024,437.50. These funds will be allocated to Canadian exploration expenses for the Larder Project in Ontario, with a deadline to incur and renounce these expenditures by December 31, 2024. The placement was led by BMO Capital Markets and Raymond James Ltd. and includes a 5% commission to underwriters. The shares are subject to a four-month hold period and are not registered for sale in the U.S.
- Raised C$23,024,437.50 through the flow-through share placement.
- Funds will support Canadian exploration activities at the Larder Project.
- None.
VANCOUVER, British columbia, Feb. 16, 2023 (GLOBE NEWSWIRE) -- MAG Silver Corp. (TSX / NYSE American: MAG) (“MAG” or the “Company”) announced today that it has completed its previously announced bought deal private placement and has issued 969,450 common shares on a “flow-through basis” (as defined in the Income Tax Act (Canada)) (the “Flow-Through Shares”), including 126,450 Flow-Through Shares issued upon the full exercise of a
The total gross proceeds from the Flow-Through Private Placement will be used to incur expenses that are eligible “Canadian exploration expenses” that will qualify as “flow-through mining expenditures”, as such terms are defined in the Income Tax Act (Canada) (the “Qualifying Expenditures”), related to the Company’s Larder Project located in Ontario, Canada. The Company will have until December 31, 2024 to incur and renounce the Qualifying Expenditures using the proceeds of the Flow-Through Private Placement.
The Flow-Through Private Placement was led by BMO Capital Markets and Raymond James Ltd. (the “Lead Underwriters”), together with a syndicate of underwriters consisting of Canaccord Genuity Corp., H.C. Wainwright & Co., LLC, National Bank Financial Inc., Roth Canada Inc., TD Securities Inc. and Scotia Capital Inc. (together with the Lead Underwriters, the “Underwriters”). In connection with the Flow-Through Private Placement, the Underwriters received a commission equal to
The Flow-Through Shares will be subject to a hold period expiring four months and one day from the date of issuance in accordance with applicable Canadian securities laws. The Flow-Through Shares have not been, and will not be, registered under the U.S. Securities Act and are not permitted to be offered or sold within the United States absent such registration or an applicable exemption from the registration requirements therein.
About MAG Silver Corp. (www.magsilver.com)
MAG Silver Corp. is a growth-oriented Canadian development and exploration company focused on becoming a top-tier primary silver mining company by exploring and advancing high-grade, district scale, precious metals projects in the Americas. Its principal focus and asset is the Juanicipio Project (
Neither the Toronto Stock Exchange nor the NYSE American has reviewed or accepted responsibility for the accuracy or adequacy of this press release, which has been prepared by management.
Cautionary Note Regarding Forward-Looking Statements
This news release includes certain statements that may be deemed to be “forward-looking information” within the meanings of applicable Canadian securities legislation or “forward-looking statements” within the meaning of the US Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts are forward-looking statements, including statements regarding the expected use of proceeds and the Company’s ability to incur and renounce the Qualifying Expenditures on the required timeline specified herein, if at all. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although MAG believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, impacts (both direct and indirect) of COVID-19, timing of receipt of required permits, changes in applicable laws, changes in commodities prices, changes in mineral production performance, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions, political risk, currency risk and capital cost inflation. In addition, forward-looking statements are subject to various risks, including that data is incomplete and considerable additional work will be required to complete further evaluation, including but not limited to drilling, engineering and socio-economic studies and investment. The reader is referred to the MAG’s filings with the SEC and Canadian securities regulators for disclosure regarding these and other risk factors. There is no certainty that any forward-looking statement will come to pass, and investors should not place undue reliance upon forward-looking statements.
FAQ
What is the total amount raised by MAG Silver from the recent private placement?
When does MAG Silver need to incur and renounce the qualifying expenditures?
Who were the underwriters for MAG Silver's private placement?
What are flow-through shares and their purpose for MAG Silver?
Is MAG Silver's private placement subject to any holding period?
