untune that string and hark

First Majestic (FR.to) (AG) runs a bought deal

Over the weekend, this humble corner of cyberspace announced its decision not to use strong swear words any longer on its pages. I’m now regretting that decision.

Here’s FR.to taking the Great Panther growth route:

First Majestic Silver Corp. (TSX:FR)(NYSE:AG)(FRANKFURT:FMV)(BVM:AG) (“First Majestic” or the “Company”) has announced today that it has entered into an agreement with BMO Capital Markets (“BMO”), under which BMO has agreed to buy on a bought deal basis by way of private placement, 4,620,000 common shares (the “Common Shares”) of the Company, at a price of C$6.50 per Common Share for gross proceeds of C$30,030,000 (“the Offering”).
The Company intends to use the net proceeds of the offering for general working capital and ramp development at the La Guitarra Silver Mine from the Coloso mine to the Nazareno area with the aim of bringing Nazareno online by year end and advance the permitting and planning process to develop Mina de Agua and El Rincon areas at La Guitarra. In addition, the Company intends to begin the planning process at the Plomosas Silver Project in Sinaloa for the preparation for a future Preliminary Economic Assessment (PEA). continues here

This compares to its statement on Feb 23rd when announcing its year-end numbers:

The Company is currently in open discussions with various financial partners to reduce or extend payments on certain current liabilities in order to strengthen the working capital position. Based on the Company’s current operating plan, the Company believes it has sufficient financial resources, combined with cash flows from operations, to meet its ongoing requirements.

It took six weeks for “sufficient financial resources” to turn into a bought deal and share dilution. Looks like those open discussions closed down all of a sudden.

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