First Majestic Silver Corp. announces proposed sale of La Parrilla Silver Mine for up to $33.5 million

    December 7, 2022. Vancouver, BC, Canada – First Majestic Silver Corp. (AG: NYSE; FSE: TSX) (the “Company” or “First Majestic”) is pleased to announce that, effective December 7, 2022, the Company has entered into an asset purchase agreement to complete its 100% controlled, formerly active silver mine La Parrilla, Durango, Mexico, to Golden Tag Resources Ltd. (Golden Tag) (GOG: TSX.V) for aggregate consideration of up to $33.5 million (the Transaction).

    Upon closing of the Transaction, First Majestic will receive 143,673,684 Golden Tag shares at a deemed price of CAD$0.19 per share for an aggregate value of U$20.0 million (the Consideration Shares), representing approximately 40% of Golden Tag’s outstanding shares . First Majestic will receive up to $13.5 million (see terms below) in the form of three milestone payments in either cash or shares on Golden Day, at the share price and number of shares to be determined on the anniversary (as applicable).

    Milestone: Terms of Agreement: (to the amount of):

    Redemption Payable (1) 18 months after closing of $2,700,000 in cash

    transaction and (2) upon receipt of certain

    Permits in Mexico, depending on which one

    time earlier


    Initial Deferred Payment Payable upon receipt of a written $5,750,000 in cash or stock

    Resource estimate by a qualified

    was created by experts, with (i)

    AgEq reserves of 5 million ounces or

    more proven at La Parrilla or (ii) and

    Indicated AgEq Resources of 22

    million ounces at La


    Second Deferred Payment Payable upon receipt of a written $5,050,000 in cash or stock

    Resource estimate by a qualified

    was created with experts

    Proven and Indicated AgEq Resources in the

    Volume of 12.5 million ounces in a new

    Zone in the area of ​​La Parrilla for which none

    Mineral reserves or resources identified


    The Consideration Shares are subject to a six-month vesting period, during which 25% of the Consideration Shares are granted semi-annually over a 24-month period (see table below).

    No transfer possible for: Percentage of on the respective

    limited release date

    Consideration Shares:

    6 months after graduation 25%

    12 months after completion 25%

    18 months after graduation 25%

    24 months after graduation 25%

    Pursuant to a support agreement to be entered into upon closing, First Majestic agrees to support Golden Tag’s board of directors and will have a right of first refusal to maintain its interest (up to a maximum of 19.9%). First Majestic has also agreed to participate in a future equity financing from Golden Tag of up to $9 million, with First Majestic contributing $2.7 million.

    Closing of the transaction remains subject to receipt by Golden Tag of TSX Venture Exchange approval and other customary closing conditions.

    The La Parrilla Silver Mine is a past active silver, gold, lead and zinc producing facility that was placed on care and maintenance by First Majestic in September 2019. Golden Tag is a Toronto-based mineral exploration company focused on the exploration and development of the San Diego Project, Durango State, Mexico.


    National Bank Financial is acting as financial advisor to First Majestic, with Bennett Jones LLP as its legal advisor.

    About First Majestic

    First Majestic is a publicly traded mining company focused on silver and gold production in Mexico and the United States. The Company owns and operates the San Dimas Silver-Gold Mine, Jerritt Canyon Gold Mine, Santa Elena Silver-Gold Mine and La Encantada Silver Mine.

    First Majestic is proud to offer a portion of its silver production for sale to the public. Bars, coins and medallions can be purchased online at the Bullion Store at the lowest premiums.

    FOR MORE INFORMATION, please contact [email protected] or visit our website at or call our toll free number 1.866.529.2807.



    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 United States securities laws (collectively, forward-looking statements). These statements relate to future events or future performance, business prospects or opportunities of the Company which are based on forecasts of future results, estimates of amounts not yet known and assumptions made by management, which in turn are based on management’s experience and perception regarding historical trends , current conditions and anticipated future developments. Any statement expressing or relating to a prediction, expectation, belief, plan, forecast, goal or future event or performance (often, but not always, using words or phrases such as seek, anticipate, plan, continue, estimate , expect, may, will, predict, forecast, potential, goal, intend, could, should, should, believe and similar expressions) are not statements of historical fact and may be forward-looking statements. Forward-looking statements relate to, among other things, the completion of the transaction and the expected shareholding in Golden Tag. These statements are based on the Company’s assumptions that all conditions to closing of the transaction will be satisfied in a timely manner and that the number of Golden Tag common shares outstanding at closing will be as expected. These assumptions could prove incorrect and actual results could differ materially from those anticipated. Actual results may differ from the forward-looking statements. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These include, but are not limited to: risks related to completing the financing of Golden Tag, the risk of not obtaining TSX Venture Exchange approval, and risks related to the parties’ ability to satisfy the conditions to closing of the transaction . Although First Majestic has attempted to identify important factors that could cause actual results to differ materially from those in the 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, however, there can be no assurance that these expectations will prove to be correct. Therefore, undue reliance should not be placed on the forward-looking statements contained herein. These statements apply only as of the date of this announcement. The Company does not intend and assumes no obligation to update these forward-looking statements, except as required by applicable law.

    The source language (usually English) in which the original text is published is the official, authorized and legal version. This translation is included for better understanding. The German-language version can be shortened or summarized. No responsibility or liability is accepted for the content, correctness, adequacy or accuracy of this translation. From the translator’s point of view, the report does not constitute a buy or sell recommendation! Please note the original English notification on,, or on the company website!

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