Last checked at 29 Dec 2008 07:00
Fresnillo Plc
28 Grosvenor Street
London W1K 4QR
United Kingdom
www.fresnilloplc.com
29 December 2008
Fresnillo plc
("Fresnillo" or the "Company")
MAG Silver response letter signals start of valuation process
Fresnillo plc, the world's largest primary silver producer and Mexico's second largest gold producer, announces that Fresbal Investments Ltd. ("Fresbal") a subsidiary of Fresnillo plc, has received formal notification from MAG Silver Corp. (TSX: MAG, AMEX: MVG) ("MAG Silver") stating that MAG Silver's Independent Committee of the Board has selected TD Securities as the independent valuator, pursuant to applicable Canadian law, of MAG Silver's assets, following Fresbal's expression of intent to make a formal offer to MAG Silver shareholders for all the outstanding common shares of MAG Silver not owned by Fresnillo plc.
Furthermore, MAG Silver's Independent Committee of the Board has appointed Scott Wilson Roscoe Postle Associates Inc., a recognized expert in the mining industry, to assist TD Securities in technical aspects of the valuation. It is intended that the valuation process will commence with a technicians' visit to the joint venture site during the first week in January 2009.
Jaime Lomelin, Chief Executive Officer said:
"We welcome the appointment of TD Securities as independent valuator and look forward to moving forward towards making a formal offer to MAG Silver shareholders as set out in our press release of 1 December".
This news release is for informational purposes only and does not constitute an offer to buy or solicitation of an offer to sell any securities. MAG shareholders and other interested parties are urged to read Fresbal Investments Ltd's takeover bid circular and other relevant documents filed with the applicable Canadian and United States securities authorities when they become available.
Cautionary Information Regarding Forward-Looking Statements
Statements about the intentions of Fresnillo and Fresbal Investments Ltd. and the expected effects, timing and completion of the proposed transaction and all other statements in this release other than historical facts constitute forward-looking statements. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. The statements are based upon Fresnillo plc.'s current expectations and beliefs and are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those described in the forward looking statements, including, among other things, whether the conditions to the offer will be satisfied, general economic factors, business and capital market conditions, general industry trends, changes in tax law requirements and government regulation. There can be no assurances that any transaction will be consummated. Fresnillo Plc. disclaims any obligation to update or revise the information in this news release based on new information or otherwise, unless otherwise required by law.
For information about Mag Silver please visit www.magsilver.com.
For further information about Fresnillo plc 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 |
| 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 - Fresnillo II, 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 1.3 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, within the next ten years and increasing its gold production.