MAG Silver completes US$65M bought deal financing

On March 1, 2016, MAG Silver Corp. (the Company) completed a bought deal financing and has issued 8,905,000 shares of common stock at US$7.30 per share, for gross proceeds of US$65,006,500. On March 4, 2016, the underwriters exercised an over-allotment option of 1,335,750 common shares and the additional gross proceeds of US$9,750,975 from the exercise of the Over-allotment Option brought the total gross proceeds raised from the Offering to US$74,757,475.

The common shares were offered in each of the provinces of Canada, other than Québec, by way of a prospectus supplement dated February 23, 2016, to the Company’s short form base shelf prospectus dated January 19, 2016, and in the United States pursuant to a prospectus supplement dated February 23, 2016, to the base shelf prospectus contained in the Company’s registration statement on Form F-10, in accordance with the MJDS.

The Offering was conducted by a syndicate of underwriters led by Scotia Capital Inc., BMO Nesbitt Burns Inc. and Raymond James Ltd., and including MacQuarie Capital Markets Canada Ltd., National Bank Financial Inc., TD Securities Inc., Cormark Securities Inc., Desjardins Securities Inc. and PI Financial Corp.

The Company was represented in Canada by Blake, Cassels & Graydon LLP with a team including Bob Wooder, Kathleen Keilty, Nadia Kim and Kirsten Snell (securities/corporate finance), and Kevin Zimka (tax), and in the US by Paul, Weiss, Rifkind, Wharton & Garrison LLP with a team including Christopher Cummings, Aaron Abramson and Rebecca Vasluianu (securities/corporate finance), and David Mayo (tax).

The Underwriters were represented in Canada by Stikeman Elliott LLP with a team including Neville McClure and Victor Gerchikov (securities/corporate finance), and in the US by Skadden, Arps, Slate, Meagher & Flom LLP with a team including Riccardo Leofanti, Colin Brown and Justin Flavelle (securities/corporate finance).