Eric Sprott to invest $60M in MAG Silver

CPE News (4/27/2020) – MAG Silver Corp. (TSX/NYSE American: MAG) has entered into a subscription agreement with Eric Sprott pursuant to which 2176423 Ontario Ltd., a corporation beneficially controlled by Sprott will subscribe 4,528,302 common shares of MAG, by way of a non-brokered private placement, at a price of CDN $13.25 for gross proceeds to MAG of CDN $60,000,002.

The financing is expected to close on or before April 30, 2020.

MAG intends to use the net proceeds to fund exploration and development of the Juanicipio Project and for working capital and general corporate purposes.

MAG Silver Corp. is Vancouver based mineral development and exploration company that is focused on the acquisition, development and exploration of high-grade, district-scale projects located in the Americas. Its principal property, and its only material property is its 44% interest in the Juanicipio Project, being developed in a Joint Venture with Fresnillo (56%). The Juanicipio Project is primarily a silver exploration and development project now in the mine development and construction phase.

photo credit: MAG Silver

News Release

April 27, 2020
For Immediate Release NR#20-06

MAG Silver Announces a $60 Million Private Placement

Vancouver, B.C. MAG Silver Corp. (TSX / NYSE American: MAG) (“MAG”) MAG is pleased to announce that it has arranged a non-brokered private placement with Mr. Eric Sprott, through 2176423 Ontario Ltd., a corporation beneficially controlled by him, offering 4,528,302 common shares of MAG (the “Common Shares”) at a price of C$13.25 per Common Share for gross proceeds of C$60,000,002 (the “Offering”).

MAG intends to use the net proceeds of the Offering to fund exploration and development of the Juanicipio Project and for working capital and general corporate purposes. The Offering is expected to close on or before April 30, 2020, subject to satisfaction of customary closing conditions including the approval of the Toronto Stock Exchange.

Any securities issued pursuant to the Offering will be subject to a hold period under applicable Canadian securities laws, which will expire four months plus one day from the date of closing of the Offering. A finders’ fee is payable in connection with the Offering.

“Mr. Sprott has recognized this as an investment opportunity in a world class silver project which is heading into cash flow in the near future.” said George Paspalas, President and CEO of MAG. “We understand this is Mr. Sprott’s largest single investment in the silver space, and would like to thank him for his strong sign of support.”

The securities to be issued under the Offering have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of MAG’s securities in the United States.

About MAG Silver Corp.

MAG Silver Corp. is a Canadian advanced stage development and exploration company focused on becoming a top-tier primary silver mining company, by exploring and advancing high-grade, district scale, silver-dominant projects in the Americas. Its principal focus and asset is the Juanicipio Project (44%), being developed in a Joint Venture with Fresnillo (56%). The Juanicipio Project is located in the Fresnillo Silver Trend in Mexico, the world’s premier silver mining camp. Fresnillo as operator, is currently constructing and developing the surface and underground infrastructure on the property to support a 4,000 tonnes per day mining operation. As well, an expanded exploration program is in place at Juanicipio with multiple highly prospective targets across the property.

For further information on behalf of MAG Silver Corp.

Contact Michael J. Curlook,
VP Investor Relations and Communications
Phone: (604) 630-1399
Website: www.magsilver.com
Toll Free: (866) 630-1399
Email: info@magsilver.com