First Majestic Elects Not to Exercise Right to Match Coeur's Offer for Orko
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 19, 2013) - First Majestic Silver Corp. (TSX:FR)(NYSE:AG)(FRANKFURT:FMV) ("First Majestic" or the "Company") announces that it has today notified the Board of Directors of Orko Silver Corp. that it is not matching the offer made by Coeur d'Alene Mines Corporation ("Coeur") and will not be increasing the consideration under First Majestic's offer to acquire all of the issued and outstanding Orko shares.
On February 13, 2013, Orko's Board declared that Coeur's offer was a superior proposal under the terms of the arrangement agreement (the "Arrangement Agreement") entered into between First Majestic and Orko dated December 16, 2012. Under the Arrangement Agreement, First Majestic had the right to match Coeur's offer prior to 11:59 PM PT on February 19, 2013.
Keith Neumeyer, President & CEO stated: "It is our view that by increasing the offer beyond our previous bid, the economics of the La Preciosa project drop below our minimum requirements for a rate of return and financial payback to our shareholders; therefore, we will not attempt to match the Coeur offer for La Preciosa as we do not believe it would be in the best interests of our shareholders, which is always our primary concern whenever we consider any acquisition."
Upon termination of the Arrangement Agreement, Orko is obligated to pay an C$11.6 million termination fee to First Majestic. |
