MAG Silver shareholder drops plan to make a bid for the company

By Lisa Kerner

Charlotte, N.C., June 23 - MAG Silver Corp. investor Fresnillo plc said it will not make a $4.54-per-share cash offer for the company through Fresbal Investment Ltd. as first announced in December due to risks associated with the successful completion of the transaction.

Also, the decision reflects "the fact that even after this protracted period of time, it has not been possible to conclude the independent valuation of MAG required under applicable Canadian securities laws in order to permit the offer to proceed," Fresnillo said in a schedule 13D/A filed with the Securities and Exchange Commission on Tuesday.

"Fresnillo highly regrets that it was unable to deliver what would essentially be a free option to MAG's shareholders for them to evaluate," the filing said.

The investor beneficially owns 9,314,877 shares, or 19%, of the Vancouver, B.C., silver mining company.

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