NEWS RELEASE TRANSMITTED BY Marketwired
FOR: MAG Silver Corp.
TSX SYMBOL: MAG
NYSE MKT SYMBOL: MVG
MAY 15, 2014
MAG Silver Reports First Quarter Financial Results
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 15, 2014) - MAG Silver Corp.
(TSX:MAG)(NYSE MKT: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
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.
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
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)(NYSE MKT: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 Valdecanas
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 NYSE MKT 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.
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
MAG Silver Corp.
Michael J. Curlook
VP Investor Relations and Communications
(604) 630-1399 or Toll free: (866) 630-1399
INDUSTRY: Manufacturing and Production - Mining and Metals
-0- May/15/2014 20:30 GMT
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