First Mining Gold Corp. (TSE: FF) (OTCMKTS: FFMGF) (FRANKFURT: FMG) entered into an amending agreement with First Majestic Silver Corp. (TSE: AG) (NYSE: AG), changing its silver purchase agreement from five years ago.
Announced on Friday, the companies have agreed to amend the terms of the final tranche payment under the original agreement to be a USD$5 million cash payment, which First Majestic will be expected to pay by March 31, 2025.
First Mining has changed the terms of the warrants it originally issued to First Majestic on July 2, 2020.
Furthermore, First Mining initially set the 32,050,228 warrants to expire on July 2, 2025, with an exercise price of $0.374 per share. Additionally, the company has now lowered the exercise price to $0.20 per share and extended the expiration date to March 31, 2028.
”This final payment solidifies First Majestic’s interest in the Springpole Gold Project, securing the over 20-million-ounce silver stream with a Canadian-based and highly experienced silver mining company,” said Dan Wilton, CEO of First Mining.
“When in production, the Springpole Gold Project would be Ontario’s largest silver producer securing a domestic supply of a key metal required for various clean energy applications including electric vehicles.”
However, if First Mining’s stock price stays at or above $0.30 for 45 straight trading days, the company can shorten the expiration date. This will give warrant holders just 30 days to use them before they expire. Everything else about the warrants remains the same.
Read more: Meridian Mining pre-feasibility study hikes Brazilian project net present value by 71%
Read more: Why are exploration companies leaving the Toronto Stock Exchange?
First Mining pushes flagship project through environmental process
First Mining Gold is a Canadian mineral exploration and development company headquartered in Vancouver, British Columbia. Founded in 2015, the company focuses on acquiring, exploring, and developing gold projects across Canada.
Its flagship asset is the Springpole Gold Project in northwestern Ontario. It’s one of the country’s largest undeveloped gold projects. First Mining has advanced the project to the Feasibility Study stage and submitted its Final Environmental Impact Statement. Furthermore, the company anticipates a decision by late 2025.
Wilton emphasized that amid the destabilizing threats posed by U.S. tariffs and other macroeconomic challenges, the Springpole Gold Project will play a crucial role in supporting both Ontario and Canada’s economic stability. The project will also create thousands of jobs, generate government revenue, and provide significant benefits to local and Indigenous communities. Additionally, it will bring much-needed infrastructure to northwestern Ontario while driving economic growth and diversification.
.
