Mag Silver rallies on $60M infusion from Eric Sprott
Northernminer - Shares of Mag Silver (TSX: MAG; NYSE-AM: MAG) gained as much as 31% to a several month high of $17.87 on the TSX following news of precious metals sector financier Eric Sprott investing $60 million into the soon-to-be silver producer.
The $60-million equity placement saw Sprott buy 4.528 million common shares of Mag Silver at $13.25 apiece to top up the company’s treasury from the US$72.4 million reported as of year-end 2019. Sprott’s investment gives him a direct 5% interest in the company, and according to president and CEO George Paspalas, is Sprott’s “largest single investment in the silver space.”
The funds are primarily earmarked to finance development cash calls at its 44%-owned Juanicipio silver mine project, which is advancing towards production this year in the Fresnillo district of Mexico’s Zacatecas state.