First Mining Gold Corp. Receives Final Payment of US$5 Million from First Majestic Silver Corp.
Vancouver, BC – March 28, 2025 – First Mining Gold Corp. (First Mining or the Company) is thrilled to announce that it has received the final payment of US$5 million from First Majestic Silver Corp. (First Majestic) in connection with the silver stream agreement for the Springpole Gold Project (Springpole Project) located in northwestern Ontario.
Background of the Silver Stream Agreement
On June 10, 2020, First Mining, Gold Canyon Resources Inc. (First Mining’s wholly-owned subsidiary that owns the Springpole Project), and First Majestic entered into a silver purchase agreement (Silver Purchase Agreement). According to the terms of the agreement, First Majestic was granted a stream over all the silver produced from the Springpole Project in exchange for certain cash and share payments.
Payment Structure
The Silver Purchase Agreement stipulated that First Majestic would pay First Mining an initial cash payment of US$10 million upon closing of the agreement. Additionally, First Majestic was to make annual payments of US$1 million in cash, starting from the first commercial production of gold at the Springpole Project. The final payment of US$5 million was due upon the achievement of a gold production rate of 15,000 ounces per day at the Springpole Project.
Impact on First Mining
The receipt of the final US$5 million payment from First Majestic marks a significant milestone for First Mining. This payment not only brings the Company closer to realizing its financial goals but also validates the potential of the Springpole Project.
Impact on the Mining Industry and the World
The agreement between First Mining and First Majestic is a testament to the growing trend of silver streams in the mining industry. Silver streams provide mining companies with an alternative source of financing for their projects and offer investors exposure to precious metals production without the risks associated with exploration and development.
Moreover, the agreement has global implications as it demonstrates the potential for collaboration between Canadian and Mexican mining companies. As the world’s second and fourth largest gold producers, respectively, Canada and Mexico have a long history of mining cooperation. This agreement reinforces the strong economic ties between the two countries and highlights the potential for future collaborations.
Conclusion
First Mining’s receipt of the final US$5 million payment from First Majestic is an exciting development for the Company and the mining industry as a whole. This agreement not only brings First Mining closer to its financial goals but also validates the potential of the Springpole Project. Furthermore, it highlights the growing trend of silver streams in the mining industry and the potential for increased collaboration between Canadian and Mexican mining companies.
- First Mining Gold Corp. has received the final payment of US$5 million from First Majestic Silver Corp.
- The payment was due upon the achievement of a gold production rate of 15,000 ounces per day at the Springpole Project.
- The agreement is a significant milestone for First Mining and validates the potential of the Springpole Project.
- The agreement is a testament to the growing trend of silver streams in the mining industry.
- The agreement has global implications, highlighting the potential for increased collaboration between Canadian and Mexican mining companies.
