MAG Silver Reports First Quarter Financial Results
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 15, 2014) - MAG
Silver Corp. (TSX:MAG)(NYSEMKT:MVG) ("MAG" or the "Company")
announces the Company's unaudited financial results for the three
months ended March 31, 2014. For complete details of the first
quarter unaudited Condensed Interim Consolidated Financial
Statements and related Management's Discussion and Analysis, please
see the Company's filings on SEDAR (www.sedar.com) or on EDGAR
(www.sec.gov). All amounts herein are reported in United States
dollars unless otherwise specified.
At March 31, 2014, the Company had working capital of
$21,149,446 (compared to $37,917,231 at March 31, 2013), including
cash of $20,072,036 (compared to $37,790,974 at March 31, 2013).
The Company currently has sufficient working capital to maintain
all of its properties and currently planned programs extending
beyond the next 12 months. The primary use of cash during the
quarter ended March 31, 2014 was for advances to Minera Juanicipio
S.A. de C.V. ("Minera Juanicipio"), which along with MAG's
Juanicipio expenditures on its own account, totaled $1,755,906
(2013: $77,536). The Company also expended $1,374,424 (2013: Nil)
on the Salamandra earn in option, and $357,726 (2013: $1,559,977)
on its other exploration and evaluation properties.
The Company's net loss for the three months ended March 31, 2014
amounted to $1,093,162 (March 31, 2013: $1,658,073) or $0.02/share
(March 31, 2013: $0.03/share). The net loss decreased in the
current quarter compared to prior period, primarily as a result of
lower share based payment expense of $434,408 (March 31, 2013:
636,600), and no placement fees incurred in the current quarter
(March 31, 2013: 143,900). In the quarter ended March 31, 2014, the
Company granted no stock options (March 31, 2013: 100,000 stock
options) but recorded $434,408 (March 31, 2013: $636,600) of share
based payment expense (a non-cash item) relating to stock options
vesting to employees and consultants in the period. The fair value
of all share-based payment compensation is estimated using the
Black-Scholes-Merton option valuation model.
Project Updates
At Minera Juanicipio, the proposed 2014 development budget is
$11.4 million (MAG's 44% share is $5 million), and is designated
primarily for the ramp advancement and some detailed engineering.
The Juanicipio ramp decline is currently advancing with
conventional drill and blast cycles as well as with the continuous
miner. In addition to the planned Juanicipio development work,
exploration is also planned in 2014 to seek new veins and trace
structures and veins in neighbouring parts of the district onto the
Minera Juanicipio joint venture ground. The proposed 2014
exploration budget for Minera Juanicipio is US$3.6 million (MAG's
44% share is US$1.6 million). As at March 31, 2014 Minera
Juanicipio had $4.3 million in cash available for 2014 budgeted
exploration and development.
An updated independent mineral resource estimate for the
Juanicipio property is currently in progress, and is expected in
the second quarter of 2014.
No active exploration is currently being undertaken on the Cinco
de Mayo property, as the Company remains in the process of
negotiating a renewed surface access agreement with the local
Ejido. The overall timeline to successful resolution and renewed
surface access is not determinable at this time, and will depend
upon various factors including but not limited to: the ability of
the Company to arrive at a settlement agreement that would be fully
supported by the majority of the Ejido; and, the ability of the
Ejido to conduct a properly constituted Assembly meeting, with
quorum, and favourable outcome.
At Salamadra, where the Company has an option to earn up to 70%
of the property, the system remains open in all directions. The
Phase II drill program is currently ongoing with two drill rigs and
assays pending, as the Company continues to delineate the system
while fleshing out the best intercepts.
About MAG Silver Corp. (www.magsilver.com)
MAG Silver Corp. (TSX:MAG)(NYSEMKT:MVG) is focused on advancing
two significant projects located within the Mexican Silver Belt.
Our mission is to become one of the premier companies in the silver
mining industry. Currently, we are advancing the underground
decline towards the high grade Valdecañas Silver vein and
delineating the Desprendido and Juanicipio discoveries in Zacatecas
State, all within the joint venture between MAG Silver (44%) and
Fresnillo PLC (56%). In addition, we are negotiating surface access
in order to further delineate our district scale, 100% owned Cinco
de Mayo property in Chihuahua state, where two new silver, lead,
zinc discoveries are opening up further growth opportunities for
MAG Silver Corp.
On behalf of the Board of MAG SILVER CORP.
Larry Taddei, Chief Financial Officer
Neither the Toronto Stock Exchange nor the NYSEMKT has
reviewed or accepted responsibility for the accuracy or adequacy of
this press release, which has been prepared by management.
This release includes certain statements that may be deemed
to be "forward-looking statements" within the meaning of the US
Private Securities Litigation Reform Act of 1995. All statements in
this release, other than statements of historical facts are forward
looking statements, including statements that address future
mineral production, reserve potential, exploration drilling,
exploitation activities and events or developments. Forward-looking
statements are often, but not always, identified by the use of
words such as "seek", "anticipate", "plan", "continue", "estimate",
"expect", "may", "will", "project", "predict", "potential",
"targeting", "intend", "could", "might", "should", "believe" and
similar expressions. These statements involve known and unknown
risks, uncertainties and other factors that may cause actual
results or events to differ materially from those anticipated in
such forward-looking statements. Although MAG believes the
expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of
future performance and actual results or developments may differ
materially from those in the forward-looking statements. Factors
that could cause actual results to differ materially from those in
forward-looking statements include, but are not limited to, changes
in commodities prices, changes in mineral production performance,
exploitation and exploration successes, continued availability of
capital and financing, and general economic, market or business
conditions, political risk, currency risk and capital cost
inflation. In addition, forward-looking statements are subject to
various risks, including that data is incomplete and considerable
additional work will be required to complete further evaluation,
including but not limited to drilling, engineering and
socio-economic studies and investment. The reader is referred to
the Company's filings with the SEC and Canadian securities
regulators for disclosure regarding these and other risk factors.
There is no certainty that any forward looking statement will come
to pass and investors should not place undue reliance upon
forward-looking statements.
Please Note:
Investors are urged to consider closely the disclosures in
MAG's annual and quarterly reports and other public filings,
accessible through the Internet at www.sedar.com and
www.sec.gov/edgar/searchedgar/companysearch.html.
MAG Silver Corp.Michael J. CurlookVP Investor Relations and
Communications(604) 630-1399 or Toll free: (866) 630-1399(604)
681-0894info@magsilver.comwww.magsilver.com
MAG Silver (TSX:MAG)
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