First Mining Gold Corp. and First Majestic Silver Corp. Announce Amendments to Silver Purchase Agreement
VANCOUVER, BC, March 14, 2025 – First Mining Gold Corp. (“First Mining” or the “Company”) and First Majestic Silver Corp. (“First Majestic”) have recently announced the amendment of the terms of the final tranche payment under their Silver Purchase Agreement. The original agreement was signed on June 10, 2020, between the three parties: First Majestic, First Mining, and Gold Canyon Resources Inc., a wholly-owned subsidiary of First Mining.
Amendments to the Silver Purchase Agreement
The amending agreement (the “Amending Agreement”) was executed to modify the terms of the final tranche payment, known as Tranche 3, under the Silver Purchase Agreement. Specifically, the Company and First Majestic have agreed to change the payment method from a combination of cash and shares to a cash-only payment of US$5 million.
Payment Timeline
The cash payment under Tranche 3 will now be due by First Majestic on March 31, 2025.
Impact on First Mining Gold Corp.
The amendment to the Silver Purchase Agreement will provide First Mining with a more straightforward and predictable cash flow. The Company will receive the US$5 million payment in full upon the agreement’s specified deadline, eliminating any potential uncertainty related to the delivery of shares as part of the payment.
Impact on the World
The amendment to the Silver Purchase Agreement between First Mining and First Majestic may not have a significant impact on the global market. However, it does represent a continuation of the mining industry’s trend towards cash settlements and away from complex, share-based transactions.
Conclusion
First Mining Gold Corp. and First Majestic Silver Corp. have recently announced the amendment of the terms of the final tranche payment under their Silver Purchase Agreement. The change will result in a cash-only payment of US$5 million by First Majestic to First Mining on March 31, 2025. This amendment will provide First Mining with a more predictable cash flow and may represent a continuation of the mining industry’s trend towards simpler, cash-based transactions.
- First Mining Gold Corp. and First Majestic Silver Corp. amend Silver Purchase Agreement
- Change to Tranche 3 payment: cash-only US$5 million payment
- Payment due by First Majestic on March 31, 2025
- Provides First Mining with more predictable cash flow
- Represents a continuation of mining industry’s trend towards simpler transactions
