Last checked at 15 May 2009 07:00
Fresnillo Plc
28 Grosvenor Street
London W1K 4QR
United Kingdom
www.fresnilloplc.com
15 May 2009
Application to the Ontario Securities Commission regarding MAG Silver
Further to its announcement of May 11, Fresnillo Plc ("Fresnillo") announces that on May 13, 2009 it filed an application with the Director of Corporate Finance at the Ontario Securities Commission ("OSC") in connection with the intention of Fresbal Investments Ltd. ("Fresbal"), a wholly-owned subsidiary of Fresnillo, to make an offer for all of the shares of MAG Silver Corp. ("MAG"), announced on December 1, 2008.
This application asks the OSC Director to set a three week time frame for MAG Silver's Independent Committee and Valuator to produce a formal valuation, which will permit Fresbal to send its offer to MAG shareholders. If a valuation is not forthcoming in this time frame, Fresnillo has asked for an exemption from the valuation requirement, so as to enable Fresbal to make its offer directly to MAG shareholders without further delay.
Fresnillo's key reasons for filing this application are:
The Independent Committee of MAG Silver has directed Toronto-Dominion Securities Inc. ("TDSI"), the independent valuator chosen by such Committee, to cease work on the valuation.
TDSI has had all available information regarding the Juanicipio joint venture for almost four months.
Fresnillo remains willing to provide TDSI additional proprietary information in order to facilitate the valuation, subject to the execution of an acceptable confidentiality agreement with TDSI.
Fresnillo anticipates that, absent an order from the regulator, MAG's Independent Committee will continue to prohibit the valuator from producing an independent valuation, in an attempt to impede Fresbal's offer and deprive MAG shareholders from the opportunity to consider the offer at this time or in the future.
Fresnillo will provide further updates as soon as there is any relevant development.
For further information please visit www.fresnilloplc.com or contact:
Fresnillo plc
London Office
Octavio Alvidrez, Head of Investor Relations Tel: +44(0)20 7399 2470
Mexico City Office
Gabriela Mayor Tel: +52555 279 3203
JPMorgan Cazenove Tel: +44 (0)20 7588 2828
Andrew Wray
Brunswick Tel: +44(0)20 7404 5959
Patrick Handley
Carole Cable
About Fresnillo plc
Fresnillo Plc is the world's largest primary silver producer and Mexico's second largest gold producer, listed on the London Stock Exchange under the symbol FRES.
Fresnillo has three producing mines, all of them in Mexico - Fresnillo, Ciénega and Herradura; two advanced development projects - Saucito, Soledad & Dipolos; and three exploration prospects - San Juan, San Julian, Orysivo, as well as a number of other long term exploration prospects and, in total, has mining concessions covering approximately 1.75 million hectares in Mexico.
Fresnillo has a strong and long tradition of mining, a proven track record of mining development and reserves replacement, and a low cost of production, being in the lowest quartile of the cost curve for both silver and gold.
Fresnillo intends to maintain its position as the world's largest primary silver producer with the aim of approximately doubling production, on a silver equivalent ounce basis by 2018 and increasing its gold production.