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First Majestic Silver To Acquire Silvermex Resources

4/3/2012 2:51 PM ET

First Majestic Silver Corp. (AG,FR.TO: Quote) and Silvermex Resources Inc. (SLX.TO: Quote, GGCRF.PK) announce that they have entered into a definitive agreement pursuant to which First Majestic has agreed to acquire all of the issued and outstanding common shares of Silvermex for a consideration of 0.0355 common shares of First Majestic and C$0.0001 in cash per common share of Silvermex.

The offer values Silvemex at approximately C$0.60 per share, representing a premium of approximately 33% to the closing price of Silvermex as at April 2, 2012 and approximately 43% to the 30 day volume weighted average price or "VWAP".

As per the transaction, First Majestic will issue approximately 9.6 million First Majestic common shares valuing the company at approximately C$175.4 million based on First Majestic's 30 day VWAP on April 2, 2012.

Following completion of the transaction, the current First Majestic shareholders will hold approximately 91.7% of the combined company, while current shareholders of Silvermex will hold approximately 8.3%.

Silvermex has agreed to pay a termination fee to First Majestic of C$6.14 million upon the occurrence of certain termination events.

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by RTT Staff Writer

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