Form 51-102F3
Material Change Report
Item 1. | Name and Address of Company |
FIRST MAJESTIC SILVER CORP. (the Company) | |
1805 925 West Georgia Street | |
Vancouver, BC V6C 3L2 CANADA | |
Telephone: (604) 688-3033 | |
Facsimile: (604) 639-8873 | |
Item 2. | Date of Material Change |
November 10, 2010 | |
Item 3. | News Release |
The press release was disseminated through the services of Marketwire. | |
Item 4. | Summary of Material Change |
The Company announced the closing today of the acquisition of all the real estate interests including the original mill and infrastructure and underlying royalties and bonuses which were associated with the Real de Catorce Silver Project in San Luis Potosi State, Mexico | |
Item 5. | Full Description of Material Change |
5.1 Full Description of Material Change | |
See Schedule A attached hereto. | |
5.2 Disclosure for Restructuring Transactions | |
Not applicable. | |
Item 6. | Reliance on subsection 7.1(2) or (3) of National Instrument 51-102 |
Not applicable | |
Item 7. | Omitted Information |
Not applicable. | |
Item 8. | Executive Officer |
Keith Neumeyer, President & CEO | |
Telephone: (604) 688-3033 Facsimile: (604) 639-8873 | |
Item 9. | Date of Report |
November 10, 2010 |
SCHEDULE A |
FIRST MAJESTIC SILVER CORP. |
Suite 1805 925 West Georgia Street |
Vancouver, B.C., Canada V6C 3L2 |
Telephone: (604) 688-3033 Fax: (604) 639-8873 |
Toll Free: 1-866-529-2807 |
Web site: www.firstmajestic.com; E-mail: info@firstmajestic.com |
NEWS RELEASE
Toronto Stock Exchange FR | November 10, 2010 |
OTCQX FRMSF | |
Frankfurt FMV (WKN: A0LHKJ) |
First Majestic Completes Acquisition of Surface Rights,
Royalties and
Infrastructure at Real de Catorce Silver
Project
VANCOUVER, November 10, 2010 - First Majestic Silver Corp. ("First Majestic") (TSX: FR) is pleased to announce the closing today of the acquisition of all the real estate interests including the original mill and infrastructure and underlying royalties and bonuses which were associated with the Real de Catorce Silver Project in San Luis Potosi State, Mexico.
The total purchase price of US$3,000,000 consists of US$1,500,000 cash and the issuance of US$1,500,000 in common shares of First Majestic equalling 152,798 shares at a deemed price of $9.91 per share based on the volume weighted average of the past five days trading. The package includes title to all of the land underlying the Santa Ana Hacienda located within the Real de Catorce property, together with all associated buildings and certain historic geological and proprietary mining information relating to the project.
The Real de Catorce Silver Mine which was acquired in November 2009, had been subject to a 3% net smelter royalty (3% NSR), of which 1.75% could be acquired for a total price of US$1.75 million, if paid prior to March 15, 2014, otherwise the total purchase price would increase to US$2.1 million. In addition, the previous owner (Normabec) had agreed to acquire the surface rights, the buildings located thereon which cover the location of the previous mining operations, and all technical and geological information, in consideration for a single payment of US$1.2 million to be made by December 2010. The Company was also obligated upon commencement of commercial production, to pay an additional US$200,000 to the previous owner.
The acquisition by the Company today replaces the above mentioned total cash payments of between $3.15 and $3.4,with a total purchase price of US$3.0 million in cash and shares, and removes entirely any future NSR on the Real de Catorce project.
The Company is currently evaluating its alternatives for future production in the area, including the evaluation of past exploration works in order to plan for future underground development, mining and processing plant alternatives. In the meantime, the Company is planning to rehabilitate the Santa Ana Hacienda for the purpose of opening a mining museum to help the community create new jobs and increase the economic opportunities in the area.
The shares issued in this agreement will be subject to a four month hold period from the date of issuance under applicable Canadian securities laws.
First Majestic is a producing silver company focused in Mexico and is aggressively pursuing its business plan to become a senior silver producer through the development of its existing assets and the pursuit through acquisition of additional assets that contribute to achieving its corporate growth objectives.
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FOR FURTHER INFORMATION contact info@firstmajestic.com, visit our website at www.firstmajestic.com or call our toll free number 1.866.529.2807.
FIRST MAJESTIC SILVER CORP.
signed
Keith Neumeyer, President & CEO
This press release includes certain "Forward-Looking Statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of First Majestic Silver Corp. are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.