First Majestic Silver (NYSE: AG; TSX: FR) has entered into an equity distribution agreement to sell, with BMO Capital Markets and TD Securities acting as agents, common shares of the company "at-the-market" that would raise aggregate gross proceeds of up to US$100.0 million. The agreement is valid through June 18, 2023.
The sales agreement replaces the previous equity distribution agreement entered into between the company and the agents dated May 28, 2021, under which all sales have been completed (for total of US$100 million).
First Majestic expects to use the net proceeds of the offering, together with its current cash resources, to develop and improve the company's existing mines. It presently owns and operates three silver/gold mines in Mexico – San Dimas, Santa Elena and La Encantada – and one gold mine in Nevada, Jerritt Canyon.
During the second quarter of 2022, the company saw its total silver production rise by 6% and gold production by 1% over the first quarter, thanks in part to a successful ramp-up of the Santa Elena mine leading to a record output in terms of silver equivalents.
As a result, its second half and full year 2022 production guidance has been revised to reflect the improved milling efficiencies at Santa Elena as well as increased head grades at Jerritt Canyon. Total silver production is expected to fall between 5.8 million and 6.5 million oz., while gold production is in the range of 138,000 to 154,000 oz.
Details on First Majestic's Q2 2022 results can be accessed via www.firstmajestic.com.