Fr Frankfurt – Fmv First Majestic Announces New Stream Agreement at San Dimas MINE and New Credit Facility
New York – AG May 10, 2018
Toronto – FR
Frankfurt – FMV
FIRST MAJESTIC ANNOUNCES NEW STREAM AGREEMENT
AT SAN DIMAS MINE AND NEW CREDIT FACILITY
VANCOUVER, BC, CANADA – First Ma jestic Silver Corp. (“First Majestic”) is pleased to announce that it has
terminated the pre‐existing silver purchase agreement with Whea ton Precious Metals Corp. (“WPM”) and its
subsidiary, Wheaton Precious Metals International Ltd. (“WPMI”), relating to the newly acquired San Dimas Mine
and entered into a new precious metal purchase agreement (the “New Stream Agreement”) with WPMI and FM
Metal Trading (Barbados) Inc., a wholly‐owned subsidiary of First Majestic.
Pursuant to the New Stream Agreement, WPMI will be entitled to receive 25% of the gold production and 25%
of the silver production converted to gold equivalent at a fixe d exchange ratio of 70:1 at San Dimas in exchange
for ongoing payments equal to the lesser of US$600 (subject to a 1% annual inflation adjustment) and the
prevailing market price, for each gold ounce delivered to an offtaker under the agreement. As part of the
termination of the previous silver purchase agreement, WPMI received 20,914,590 common shares of First
Majestic.
The New Stream Agreement provides for a number of value creation opportunities with alignment between
silver and gold production and in creased post‐stream cash flow at San Dimas. First Majestic and WPMI have
agreed to fix the gold to silver ratio that will be used to cal culate the gold equivalent production at 70:1, with
provisions to adjust the gold to silver ratio if the average gold to silver ratio moves above or below 90:1 or 50:1,
respectively, for a period of six months.
For more information on the New Stream Agreement, please refer to First Majestic’s news release of January 12,
2018.
F i r s t M a j e s t i c h a s a l s o e n t e r e d into an amended and restated cr edit agreement (the “Amended Credit
Agreement”) today with the Bank of Nova Scotia, Bank of Montreal and Investec Bank PLC, as lenders. Pursuant
to the Amended Credit Agreement, the lenders have agreed, among other things, to provide First Majestic with
a US$75 million senior secured revolving term credit facility (the “New Credit Facility”). First Majestic previously
h a d a n e x i s t i n g c r e d i t a g r e e m e n t w i t h S c o t i a B a n k a n d I n v e s t e c , as lenders, which was entered into on
February 8, 2016 in connection with a senior secured credit facility, consisting of a US$25 million revolving credit
line and a US$35 million term loan (the “Existing Credit Facility”). The New Credit Facility will replace the Existing
Credit Facility and the prior Credit Facility of Primero.
The New Credit Facility will mature on the third anniversary date of the Amended Credit Agreement, but can be
prepaid in advance of such date. Interest will accrue at LIBOR plus an applicable range which is dependent on
certain financial parameters of First Majestic.
ABOUT FIRST MAJESTIC
First Majestic is a mining compan y f o c u s e d o n s i l v e r p r o d u c t i o n 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 S ilver/Gold Mine, the La Encantada Silver Mine,
the La Parrilla Silver Mine, the San Martin Silver Mine, the De l 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 [email protected], 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.
“signed”
Keith Neumeyer
President & CEO
SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS
This news release includes certain "Forward‐Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995
and “forward‐looking information” under applicable Canadian securities laws. When used in this news release, the words "antici pate", "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, amon g other things: the commercial effects of the New Stream Agreem ent; the future plans
for and the development of the San Dimas Mine; future silver production; and future growth potential for First Majestic.
These statements reflect the parties’ respective current views with respect to future events and are necessarily based upon a number of assumptions and
estimates that, while considered reasonable by the respective p arties, 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 parties have made assumptions and estimates based on or rel ated to many of these factors. S uch factors include, without li mitation: fluctuations in
general macro‐economic conditions; fluctuations in securities markets and the market price of First Majestic’s shares; fluctuations in the spot and forward
price of silver, gold, base metal s 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); c hanges in national and local gove rnment, legislation, taxation, controls, regulations and
political or economic developments in Canada or Mexico; operating or technical difficulties in connection with mining or development activities; risks and
hazards associated with the busin ess of mineral exploration, de velopment and mining (including environmental hazards, industri al accidents, unusual or
unexpected formations, pressures, cave‐ins and flooding); and the factors identified under the caption "Risk Factors" in First Majestic’s Annual Information
Form.
Readers are cautioned against attributing undue certainty to forward‐looking statements or information. Although the parties have attempted to identify
important factors that could cause actual results to differ mat erially, there may be other factors that cause results not to b e anticipated, estimated or
intended. The parties do not intend, and do not assume any obli gation, to update these forward‐l ooking statements or informati on 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.