Joint Venture Partners Greenlight Construction of Silver Project in Mexico

Source: Streetwise Reports   04/15/2019

This decision comes after several years of ongoing exploration and development at the site.

The boards of MAG Silver Corp. (MAG:TSX; MAG:NYSE.MKT) and joint venture (JV) partner Fresnillo, as well as the shareholders of the JV entity itself, Minera Juanicipio, all approved advancement of their Juanicipio project in Zacatecas, Mexico, MAG announced in a news release. MAG owns 44% of the project, and Fresnillo, which will be the operator, holds the remaining 56%.

“The joint approval of the project is a landmark milestone for the Juanicipio JV,” MAG CEO George Paspalas said in the release.

“We are fortunate to have Fresnillo plc, with over 130 years of experience in the area, managing the construction and operations of Juanicipio. Their insightful experience has resulted in a very efficient upsizing development opportunity for the Joint Venture, which is greatly appreciated by the Board and Management of MAG Silver. We look forward to working together with our partner to realize further value from the joint venture,” Paspalas added.

Fresnillo CEO Octavio Alvidrez also commented in the release: “The decision to approve Juanicipio reflects the extensive work the JV partners have done to derisk the project to meet stringent development criteria. This decision to invest demonstrates our confidence in the long-term outlook for mining in Mexico.”

Construction at Juanicipio, which should create about 2,750 jobs, is to start immediately and is estimated to be completed in late 2020. Once in production, Juanicipio will create1,720 jobs.

The mine, in its initial 12-year life, is expected to produce an average of 11.7 million ounces of silver and 43,500 ounces of gold per year. Capex required before the mine is operating is about CA$395 million.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: MAG Silver. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: MAG:TSX; MAG:NYSE.MKT,
)