Toronto–FR Frankfurt–FMV First Majestic Completes Acquisition of Springpole Silver Stream
�
New�York�–�AG�� �� �������������������July�2,�2020� Toronto�–�FR� Frankfurt�–�FMV��
First Majestic Completes Acquisition of Springpole Silver Stream
Vancouver,�BC,�Canada�–�First�Majestic�Silver�Corp.�(AG:�NYSE;�FR:�TSX)�(the�"Company"�or�“First�Majestic”)�is� pleased�to�announce�that�all�outstanding�conditions�required�to�complete�the�previously�announced�Springpole� Silver�Stream�agreement�with�First�Mining�Gold�Corp.,�(“First�Mining”)�have�been�fulfilled.���
Under�the�agreement,�First�Majestic�has�agreed�to�purchase�50%�of�the�payable�silver�produced�from�the�Springpole� Gold�Project�(“Springpole”�or�the�“Project”)�located�in�Ontario,�Canada.�First�Majestic�agreed�to�pay�First�Mining� total�consideration�of�$22.5�million�in�cash�and�shares,�over�three�payments,�for�the�silver�stream�which�covers�the� life�of�the�Project.�The�first�payment�consisting�of�$2.5�million�in�cash�and�$7.5�million�in�First�Majestic�shares� (805,698�First�Majestic�shares�issued�at�a�deemed�price�equal�to�the�20�day�VWAP�on�the�Toronto�Stock�Exchange)� has�been�paid�to�First�Mining.�In�addition,�First�Majestic�will�make�ongoing�cash�payments�of�33%�of�the�silver�spot� price�per�ounce,�to�a�maximum�of�$7.50�per�ounce,�for�all�payable�silver�delivered�by�Springpole.�First�Mining�has� also�granted�First�Majestic�30�million�common�share�purchase�warrants,�each�of�which�will�entitle�the�Company�to� purchase�one�common�share�of�First�Mining�at�CAD$0.40�over�a�period�of�five�years.�
Full�details�of�the�transaction�can�be�found�in�First�Majestic’s�news�release�dated�June�11,�2020.�
ABOUT�THE�COMPANY�
First�Majestic�is�a�publicly�traded�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�the� San�Dimas�Silver/Gold�Mine,�the�Santa�Elena�Silver/Gold�Mine�and�the�La�Encantada�Silver�Mine.���
FOR�FURTHER�INFORMATION�contact�[email protected],�visit�our�website�at�www.firstmajestic.com�or�call� our�toll�free�number�1.866.529.2807.�
FIRST MAJESTIC SILVER CORP.
"signed"
Keith Neumeyer, President & CEO
Cautionary Note Regarding Forward Looking Statements
This�press�release�contains�“forward�looking�information”�and�"forward�looking�statements”�under�applicable�Canadian�and�U.S.�securities�laws�(collectively,� “forward�looking�statements”).�These�statements�relate�to�future�events�or�the�Company's�future�performance,�business�prospects�or�opportunities�that�
�
are�based�on�forecasts�of�future�results,�estimates�of�amounts�not�yet�determinable�and�assumptions�of�management�made�in�light�of�management's� experience�and�perception�of�historical�trends,�current�conditions�and�expected�future�developments.�Forward�looking�statements�include,�but�are�not� limited�to,�statements�with�respect�to:�the�Company’s�business�strategy;�future�planning�processes;�commercial�mining�operations;�cash�flow;�budgets;�the� timing�and�amount�of�estimated�future�production;�recovery�rates;�mine�plans�and�mine�life;�the�future�price�of�silver�and�other�metals;�costs�of�production;� costs�and�timing�of�the�development�of�new�deposits;�capital�projects�and�exploration�activities�and�the�possible�results�thereof;�closing�of�the�stream;� completion�of�milestones�thereunder;�payment�of�future�tranches�and�issuance�of�additional�shares�under�the�stream;�purchases�of�silver�under�the�stream� increases�in�shareholder�value�of�First�Mining;�and�development�of�and�production�from�the�Springpole�mine.�Assumptions�may�prove�to�be�incorrect�and� actual�results�may�differ�materially�from�those�anticipated.�Consequently,�guidance�cannot�be�guaranteed.�As�such,�investors�are�cautioned�not�to�place� undue�reliance�upon�guidance�and�forward�looking�statements�as�there�can�be�no�assurance�that�the�plans,�assumptions�or�expectations�upon�which�they� are�placed�will�occur.�All�statements�other�than�statements�of�historical�fact�may�be�forward�looking�statements.�Statements�concerning�proven�and� probable�mineral�reserves�and�mineral�resource�estimates�may�also�be�deemed�to�constitute�forward�looking�statements�to�the�extent�that�they�involve� estimates�of�the�mineralization�that�will�be�encountered�as�and�if�the�property�is�developed,�and�in�the�case�of�measured�and�indicated�mineral�resources� or�proven�and�probable�mineral�reserves,�such�statements�reflect�the�conclusion�based�on�certain�assumptions�that�the�mineral�deposit�can�be�economically� exploited.�Any�statements�that�express�or�involve�discussions�with�respect�to�predictions,�expectations,�beliefs,�plans,�projections,�objectives�or�future�events� or�performance�(often,�but�not�always,�using�words�or�phrases�such�as�“seek”,�“anticipate”,�“plan”,�“continue”,�“estimate”,�“expect”,�“may”,�“will”,�“project”,� “predict”,�“forecast”,�“potential”,�“target”,�“intend”,�“could”,�“might”,�“should”,�“believe”�and�similar�expressions)�are�not�statements�of�historical�fact�and� may�be�“forward�looking�statements”.�
Actual�results�may�vary�from�forward�looking�statements.�Forward�looking�statements�are�subject�to�known�and�unknown�risks,�uncertainties�and�other� factors�that�may�cause�actual�results�to�materially�differ�from�those�expressed�or�implied�by�such�forward�looking�statements,�including�but�not�limited�to:� the�duration�and�effects�of�the�coronavirus�and�COVID�19,�and�any�other�pandemics�on�our�operations�and�workforce,�and�the�effects�on�global�economies� and�society,�risks�related�to�the�integration�of�acquisitions;�actual�results�of�exploration�activities;�conclusions�of�economic�evaluations;�changes�in�project� parameters�as�plans�continue�to�be�refined;�commodity�prices;�variations�in�ore�reserves,�grade�or�recovery�rates;�actual�performance�of�plant,�equipment� or�processes�relative�to�specifications�and�expectations;�accidents;�labour�relations;�relations�with�local�communities;�changes�in�national�or�local� governments;�changes�in�applicable�legislation�or�application�thereof;�delays�in�obtaining�approvals�or�financing�or�in�the�completion�of�development�or� construction�activities;�exchange�rate�fluctuations;�requirements�for�additional�capital;�government�regulation;�environmental�risks;�reclamation�expenses;� outcomes�of�pending�litigation;�limitations�on�insurance�coverage�as�well�as�those�factors�discussed�in�the�section�entitled�"Description�of�the�Business���Risk� Factors"�in�the�Company's�most�recent�Annual�Information�Form,�available�on�www.sedar.com,�and�Form�40�F�on�file�with�the�United�States�Securities�and� Exchange�Commission�in�Washington,�D.C.��Although�First�Majestic�has�attempted�to�identify�important�factors�that�could�cause�actual�results�to�differ� materially�from�those�contained�in�forward�looking�statements,�there�may�be�other�factors�that�cause�results�not�to�be�as�anticipated,�estimated�or�intended.�
The�Company�believes�that�the�expectations�reflected�in�these�forward�looking�statements�are�reasonable,�but�no�assurance�can�be�given�that�these� expectations�will�prove�to�be�correct�and�such�forward�looking�statements�included�herein�should�not�be�unduly�relied�upon.�These�statements�speak�only� as�of�the�date�hereof.�The�Company�does�not�intend,�and�does�not�assume�any�obligation,�to�update�these�forward�looking�statements,�except�as�required� by�applicable�laws.��
2� �