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VANCOUVER, British Columbia, May 10, 2018 (GLOBE NEWSWIRE) -- First Majestic Silver Corp. ("First Majestic") (NYSE:AG) (TSX:FR) (Frankfurt:FMV) and Primero Mining Corp. ("Primero") are pleased to announce the completion of the plan of arrangement (the "Arrangement") previously announced in the joint news release of First Majestic and Primero dated January 12, 2018.
Under the arrangement, which took effect as of 12:01 am (Vancouver time) this morning, First Majestic has acquired all of the issued and outstanding common shares of Primero. Shareholders of Primero will receive 0.03325 First Majestic shares for each share of Primero held.
Keith Neumeyer, President and CEO of First Majestic said, "With this closing, First Majestic is integrating a large, world-class, silver and gold mine into its portfolio of operating mines. The San Dimas mine, becoming our seventh mine in Mexico, will result in a transformational leap forward in our production profile with an estimated doubling of profitable ounces produced."
"In the near future, we will be communicating our plan for San Dimas which will include ways to further improve productivity over the next 12 months," continued Mr. Neumeyer. "I would also like to take this opportunity to welcome Wheaton Precious Metals, the Primero shareholders and the employees of San Dimas into the First Majestic family."
With the Arrangement now complete, it is expected that Primero's shares will be delisted from the Toronto Stock Exchange ("TSX") in approximately 2-3 business days in accordance with the rules of the TSX.
First Majestic expects to announce later today the closing of the termination of the silver purchase agreement with Wheaton Precious Metals Corp. relating to the San Dimas Mine and the implementation of the new precious metals purchase agreement with Wheaton Precious Metals Corp. on the San Dimas Mine, as further discussed in the joint news release of January 12, 2018.
In connection with the Arrangement, holders of Primero's $75 million 2020 convertible debentures (the "Debentures") previously approved an amendment to the terms of their governing indenture pursuant to which the Debentures will mature on the next business day following the effective date of the Arrangement. As such, all Debentures will mature and will be repaid in full in accordance with the terms of the indenture on May 11, 2018.
ABOUT FIRST MAJESTIC
First Majestic is a mining company focused on silver production in Mexico and is aggressively pursuing the development of its existing mineral property assets. The Company presently owns and operates seven producing silver mines; the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine, the La Encantada Silver Mine, the La Parrilla Silver Mine, the San Martin Silver Mine, the Del Toro Silver Mine and the La Guitarra Silver Mine. Production from these seven mines is projected to be between 27 to 30 million silver equivalents ounces in 2018.
FOR FURTHER INFORMATION contact firstname.lastname@example.org, visit our website at www.firstmajestic.com or call our toll free number 1.866.529.2807.
ON BEHALF OF THE BOARD OF
FIRST MAJESTIC SILVER CORP.
President & CEO