First Majestic Silver (TSX: FR; NYSE: AG) is buying SilverCrest Mines (TSX: SVL) in a largely all-share, $154-million deal to bulk up its treasury and asset base.
The two companies signed a confidential agreement in early April and have since been completing due diligence and negotiating, arriving to a definitive agreement on July 27.
“We are quite happy to finally get the deal cut,” SilverCrest CEO Scott Drever said on a conference call. The transaction diversifies SilverCrest’s single asset risk profile and provides exposure to First Majestic’s broad portfolio, operational expertise and trading liquidity.
Under the arrangement, SilverCrest shareholders will receive 0.2769 of a First Majestic share plus $0.0001 in cash. This implies a $1.30 value to each SilverCrest share, reflecting a 37% premium to its 30 day, volume weighted average price, and a 35% premium over its July 24 close. After the transaction SilverCrest shareholders will hold 21% of First Majestic.
Read the complete article at NorthernMiner.com/news/first-majestic-silvercrest