First Majestic (NYSE:AG) completed the Springpole Silver Stream agreement with First Mining Gold Corp.
The company has agreed to purchase 50% of payable silver produced from the Springpole Gold Project, for which it will pay a total consideration of $22.5M.
First payment consists $2.5M in cash and $7.5M in AG shares, the company will make ongoing cash payments of 33% of silver price, with a maximum of $7.5 per ounce.
First Mining has also granted First Majestic 30M common share purchase warrants, each of which will entitle the company to purchase one common share of First Mining at CAD$0.40 over a period of five years.