Shares of First Majestic Silver (NYSE:AG) are more than 9% higher Thursday after the company said it has agreed with The Bank of Novia Scotia and Investec Bank on a $25 million revolving credit line and $35 million term loan. The funds will be used to settle the company’s existing lead and zinc prepayment facility with Bank of America, and replace the $15 million revolving credit line First Majestic assumed when it acquired SilverCrest Mines Effective with this transaction, the company has eliminated its base metal hedge with a mark to market gain of $5 million, and is settling the Bank of America prepayment facility debt with a cash payment of $31.5 million from proceeds of the $35 million term loan. The remaining $3.5 million net of transaction fees is added to the company’s treasury for general and administrative purposes. AG last traded at $4.00 with a 52-week range of $2.40 to $6.30.
The stock is up 10.19% or $0.37 after the news, hitting $4.05 per share. About 3.94M shares traded hands or 121.35% up from the average. First Majestic Silver Corp (NYSE:AG) has declined 20.69% since July 8, 2015 and is downtrending. It has underperformed by 11.17% the S&P500.
First Majestic Silver Corp. engages in the acquisition, exploration, development, and production of mineral properties with a focus on silver projects in Mexico. The company owns and operates five producing mines, including the La Encantada silver mine in Coahuila State, the La Parrilla silver mine in Durango State, the Del Toro silver mine in Zacatecas State, the San Martin silver mine in Jalisco State, and the La Guitarra silver mine in Mexico State. It also holds interests in the La Luz silver project located in in San Luis Potosi State; the Plomosas silver project located in Sinaloa State; and the Jalisco group of properties located in the Etzatlan mining district in Jalisco, Mexico. The company was formerly known as First Majestic Resource Corp. and changed its name to First Majestic Silver Corp. in November 2006. First Majestic Silver Corp. was founded in 1979 and is headquartered in Vancouver, Canada.