MAG Silver Corp.
TSX : MAG
NYSE Amex : MVG

MAG Silver Corp.

May 18, 2010 09:04 ET

MAG Silver Corp. Completes $35.2 Million Common Share Offering

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 18, 2010) -

MAG Silver Corp. (TSX:MAG)(NYSE Amex:MVG) ("Company") announces that it has completed its previously announced bought deal financing and has issued 4,603,500 common shares, including 418,500 common shares issued on exercise of the over-allotment option, at C$7.65 per share, for gross proceeds of approximately C$35.2 million (the "Offering"). The Offering was conducted by a syndicate of underwriters, led by BMO Nesbitt Burns Inc., Macquarie Capital Markets Canada Ltd., Canaccord Genuity Corp. and Raymond James Ltd. (collectively, the "Underwriters"). 

The common shares were offered in each of the provinces of Canada, other than Quebec, by way of a short-form prospectus, and in the United States on a private placement basis pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended.

A commission of 5.0% on gross proceeds will be paid to the underwriters. The net of proceeds of the offering will be used by the Company to fund exploration and development of the Juanicipio project and the Cinco de Mayo property, to fund exploration on the Lagartos property and other Mexican properties, as well as for general corporate purposes.

The securities described herein have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

On behalf of the Board of MAG SILVER CORP.,

Dan MacInnis, President and CEO

Please Note: 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 http://www.sec.gov/edgar/searchedgar/companysearch.html.

Neither the Toronto Stock Exchange nor the New York Stock Exchange Amex has reviewed or accepted responsibility for the accuracy or adequacy of this news release, which has been prepared by management.

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