Analyst Summary
- First Mining Gold Corp. has entered into an amending agreement with First Majestic Silver Corp. regarding the silver purchase agreement dated June 10, 2020.
- The final tranche payment (Tranche 3) under the Silver Purchase Agreement will now be a cash-only payment of US$5 million, payable by First Majestic by March 31, 2025.
- In exchange for the accelerated payment, First Mining has amended the terms of the common share purchase warrants issued to First Majestic on July 2, 2020.
- The exercise price of the 32,050,228 warrants has been revised from $0.374 to $0.20 per warrant, and the expiry date has been extended from July 2, 2025, to March 31, 2028.
- If the closing price of First Mining’s common shares on the TSX equals or exceeds $0.30 for 45 consecutive trading days, First Mining may accelerate the expiry date of the warrants to 30 days following a news release announcing the acceleration.
- First Mining has received conditional approval from the TSX for the amendments to the warrant terms.
- The Springpole Gold Project is advancing through the final stages of the Environmental Assessment process and is considered one of the most advanced mining projects in Canada.
- The Springpole Gold Project is expected to be Ontario’s largest silver producer, providing jobs, government revenue, and benefits for local and Indigenous communities.