Fresbal responds to MAG Silve

RNS Number : 9069M

Fresnillo PLC

06 February 2009

 



                                                                                                                                        Fresnillo Plc

                                                                                                                                        28 Grosvenor Street

                                                                                                                                        London W1K 4QR

                                                                                                                                        United Kingdom

                                                                                                      www.fresnilloplc.com

6 February 2009

Fresbal responds to MAG Silver's decision to suspend valuation

London, Toronto, Mexico City: Fresnillo plc (“Fresnillo”) announces today that its subsidiary Fresbal Investments Ltd. (“Fresbal”) has issued an announcement regarding MAG Silver Corp’s (TSX: MAG, AMEX: MVG) (“MAG Silver”) Independent Committee’s decision to suspend the independent valuation. The announcement is attached below.

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FRESBAL INVESTMENTS, LTD.

Corporativo BAL, Cuarto Piso

Moliere 222, Col. Los Morales-Polanco,

11540, D.F., México

Fresbal Investments Ltd. ('Fresbal'), a subsidiary of Fresnillo plc, today announces that it received notice on 1 February 2009 from MAG Silver Corp (TSX: MAG, AMEX: MVG) ('MAG Silver') that its Independent Committee had instructed its independent valuator to suspend all work on the formal valuation being prepared in connection with Fresbal's offer for MAG Silver.  

On 1 December 2008, Fresbal announced its intention to make a formal offer to MAG Silver shareholders and requested that a valuation be prepared, pursuant to applicable Canadian law. Fresbal has complied with its obligations under applicable securities laws in connection with the preparation of the valuation and has provided the independent valuator with all relevant information.   Fresbal is disappointed with what it views as an inappropriate delaying tactic by MAG Silver.  

Fresbal has asked staff of the Ontario Securities Commission to review the MAG Silver Independent Committee's decision to suspend work on the valuation. Fresbal intends to take the necessary steps to enable MAG Silver shareholders to receive the offer in compliance with all laws as soon as practicable, subject to the relevant conditions as outlined in the announcement dated 1 December 2008.

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This news release is for informational purposes only and is not an offer to buy or the 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 plc 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 further information please visit www.fresnilloplc.com or contact:

Fresnillo plc

London Office

Octavio Alvidrez, Head of Investor Relations            Tel: [phone]

Mexico City Office

Gabriela Mayor                                                            Tel: [phone]

JPMorgan Cazenove                                               Tel: [phone]

Andrew Wray

Brunswick                                                                 Tel: [phone]

Patrick Handley

Carole Cable

 

END

 

 

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