Eric Sprott is evidently a fan of First Majestic Silver (TSX: FR) (NYSE: AG), with it being announced this evening that he will be investing C$78.0 million in the company via a private placement conducted solely for him. The investment will be conducted via 2176423 Ontario Ltd, a corporation in which he owns.
The private placement will see Sprott purchase 5,000,000 common shares of the silver producer, at a price of C$15.60 per share, with no warrant being offered in the financing. Further, the price appears to be at a slight premium to today’s close of $15.41, as well as yesterdays close of $15.56.
Following the close of the transaction, Sprott will own a 2.3% stake in First Majestic, whom currently boasts a valuation of roughly $3.3 billion.
Net proceeds from the financing will be used to develop and or improve the firms existing mines as well as for general working capital. The financing is expected to close by September 17, 2020.
First Majestic Silver last traded at $15.41 on the TSX.
Information for this briefing was found via Sedar and First Majestic Silver. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
Mexico: The World’s Leading Silver Producer
There is a saying in the mining industry that miners go where the minerals are....