Mr. Joseph Conway of Primero reports
PRIMERO ANNOUNCES SHAREHOLDERS VOTE IN FAVOUR OF TRANSACTION WITH FIRST MAJESTIC
Primero Mining Corp.'s shareholders have voted in favour of the arrangement transaction with First Majestic Silver Corp. at a special meeting of shareholders held earlier today. In addition, holders of Primero's 5.75-per-cent convertible unsecured subordinated debentures due Feb. 28, 2020, have, at their meeting today, also voted overwhelmingly in favour of the proposed amendment of the trust indenture to accelerate the maturity date of the debentures to the next business day (as defined in the trust indenture) following the effective date of the transaction.
The transaction, whereby First Majestic will, among other matters, acquire all of the outstanding common shares of Primero, was approved by more than 99 per cent of votes cast by Primero shareholders. A copy of the complete report on voting will be made available on SEDAR.
The amendment of the trust indenture to accelerate the maturity date of the Primero debentures to the next business day following the effective date of the transaction was approved by 100 per cent of the votes cast by Primero debentureholders.
The company will now seek a final order from the Supreme Court of British Columbia to approve the transaction. The transaction is expected to close before the end of April, 2018, subject to applicable regulatory approvals (including anti-trust clearance in Mexico) and the satisfaction of other customary conditions.
Joseph Conway, interim president and chief executive officer of Primero, added: "We are very pleased at the overwhelming support by our stakeholders for this transaction with First Majestic. It provides our shareholders an attractive immediate premium as well as retaining exposure to the high-quality, long-lived San Dimas asset that they invested in, with the benefit of a significantly reduced stream. Our debentureholders will also benefit by being paid out at par plus accrued interest."
"The acquisition of Primero adds one of Mexico's largest and richest precious metals mines to our portfolio and further enhances our growth profile. We are very pleased with the strong support for the transaction and expect to create significant value for shareholders as we continue to unlock its significant regional exploration potential," said Keith Neumeyer, president and chief executive officer of First Majestic.
Primero is a Canadian-based precious metals producer that owns 100 per cent of the San Dimas gold-silver mine in Mexico.
About First Majestic Silver Corp.
First Majestic is a mining company focused on silver production in Mexico and is aggressively pursuing the development of its existing mineral property assets. The company currently owns and operates six producing silver mines: the La Parrilla silver mine, the San Martin silver mine, the La Encantada silver mine, the La Guitarra silver mine, Del Toro silver mine and the Santa Elena silver/gold mine. Production from these six mines is projected to be between 10.0 million to 10.6 million ounces of pure silver or 15.7 million to 16.6 million ounces of silver equivalents for 2017.
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