First Majestic terminates C$10.75 million private placement

By Sheri Kasprzak

Atlanta, May 26 - First Majestic Resource Corp. said it has dropped a C$10.75 million private placement that had been downsized from a C$15 million deal.

In a statement, the company cited "adverse market conditions" as the reason for terminating the offering.

"The company may elect to complete a non-brokered private placement led by its major shareholders," said the statement. "However, no agreement has been reached at this time."

According to the statement, First Majestic presently has C$4 million in working capital.

The private placement was first announced March 21 as a C$15 million deal comprised of 6 million units at C$2.50 each. The deal was downsized to C$10.75 million on May 5. The revised offering included 5 million units at C$2.15 each. The units had been comprised of one share and one half-share warrant. The whole warrants would have been exercisable at C$2.50 each for two years.

Jennings Capital Inc. was the placement agent.

In other news, First Majestic said drilling is expected to begin at its La Parrilla Silver Mine in the next few weeks.

Based in Vancouver, B.C., First Majestic is a silver mining and exploration company.

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