MAG Silver Corp. Announces Bought Deal Financing
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.
MAG Silver Corp. (the “Company”) has today entered into an agreement with a syndicate of underwriters led by Raymond James Ltd. and including CIBC World Markets Inc (the “Underwriters”), under which the Underwriters have agreed to buy on a private placement basis 2,200,000 units from the Company at a price of $7.25 per unit. Each unit consists of one common share and one half of one common share purchase warrant. Each whole warrant will be exercisable into one common share for 12 months at a price of $10.00. The Company will grant the underwriters an option, exercisable up until 48 hours prior to the closing date of the offering, to purchase up to an additional 350,000 Units at $7.25 per unit. Closing is expected to occur on or about February 13, 2007.
The Offering is being made in British Columbia, Alberta, Ontario and Quebec, and is subject to the approval of regulatory authorities. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
Contact Name: Gordon Neal, V.P. Corporate Development
Contact Phone Number: (604) 628-4713