Eric Sprott takes 2.3% stake in First Majestic Silver, valued at C$78 million
Thursday, First Majestic Silver Corp. (AG: NYSE; FR: TSX) announced a bought deal where Eric Sprott will buy 5 million shares of the silver producer, the deal is valued at $78 million Canadian. Sprott will own a 2.3% stake in First Majestic when the deal closes, the company said.
“We believe there has been a lack of appreciation for First Majestic’s equity in 2020 and we are happy to align ourselves with Keith, who recognizes the mispricing of silver in the marketplace and has been a stalwart for silver,’ said Sprott in a press release.
“We are very pleased to welcome Mr. Sprott as a significant shareholder in First Majestic. As a fellow silver bull, Eric has been recognized as one of the most influential leaders within the silver investment community and this deal represents his largest treasury investment in a silver producer, let alone the entire silver space,” added Keith Neumeyer, president and CEO of First Majestic.
The renewed appetite in silver comes as prices, in the last few months, have surged higher, outperforming gold. As of Friday, the gold/silver ratio was trading at 72.5 points, meaning it takes nearly 73 ounces of silver to equal the value of one ounce of gold. The ratio is down sharply from March when it hit a record high around 125 points.