The registrant files annual reports under cover:
|
Form 20-F ☐
|
Form 40-F ☑
|
||||||||||
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
|
||||||||||||
Regulation S-T Rule 101(b)(1):
|
☐
|
|||||||||||
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
|
||||||||||||
Regulation S-T Rule 101(b)(7):
|
☐
|
|||||||||||
Indicate by check mark whether by furnishing the information contained in this Form, the
|
||||||||||||
registrant is also thereby furnishing the information to the Commission pursuant to Rule
|
||||||||||||
12g3-2(b) under the Securities Exchange Act of 1934:
|
Yes ☐
|
No ☑
|
||||||||||
If “Yes” is marked, indicate below the file number assigned to the registrant in
|
||||||||||||
connection with Rule 12g3-2(b): 82-
|
||||||||||||
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
|
||||||||||||
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
Date: May 12, 2017
|
MAG Silver Corp.
|
|
|
“George Paspalas”
|
|
|
GEORGE PASPALAS
|
|
|
President & CEO
|
|
![]() |
MAG SILVER CORP.
Unaudited Condensed Interim Consolidated Financial Statements (expressed in thousands of US dollars)
For the three months ended March 31, 2017
Dated: May 11, 2017
|
VANCOUVER OFFICE
Suite 770
800 W. Pender Street
Vancouver, BC V6C 2V6
|
604 630 1399 phone
866 630 1399 toll free
604 681 0894 fax
|
TSX: MAG
NYSE MKT: MAG
www.magsilver.com
info@magsilver.com
|
MAG SILVER CORP.
|
|||||||||||
Condensed Interim Consolidated Statements of Financial Position (Unaudited)
|
|||||||||||
(In thousands of US dollars, except shares)
|
|||||||||||
Note
|
March 31, 2017
|
December 31, 2016
|
|||||||||
ASSETS
|
|||||||||||
CURRENT
|
|||||||||||
Cash and cash equivalents
|
3
|
$
|
77,442
|
$
|
83,347
|
||||||
Term deposits
|
3
|
55,000
|
55,000
|
||||||||
Accounts receivable
|
4
|
759
|
628
|
||||||||
Investments
|
5
|
722
|
718
|
||||||||
Prepaid expenses
|
569
|
181
|
|||||||||
TOTAL CURRENT ASSETS
|
134,492
|
139,874
|
|||||||||
EQUIPMENT
|
6
|
50
|
54
|
||||||||
INVESTMENT IN ASSOCIATE
|
7
|
42,384
|
37,312
|
||||||||
TOTAL ASSETS
|
$
|
176,926
|
$
|
177,240
|
|||||||
LIABILITIES
|
|||||||||||
CURRENT
|
|||||||||||
Trade and other payables
|
$
|
854
|
$
|
733
|
|||||||
COMMITMENTS
|
7,14
|
||||||||||
DEFERRED INCOME TAXES
|
15
|
-
|
589
|
||||||||
TOTAL LIABILITIES
|
854
|
1,322
|
|||||||||
EQUITY
|
|||||||||||
Share capital
|
8
|
343,993
|
343,654
|
||||||||
Equity reserve
|
16,247
|
16,133
|
|||||||||
Accumulated other comprehensive income
|
895
|
882
|
|||||||||
Deficit
|
(185,063
|
)
|
(184,751
|
)
|
|||||||
TOTAL EQUITY
|
176,072
|
175,918
|
|||||||||
TOTAL LIABILITIES AND EQUITY
|
$
|
176,926
|
$
|
177,240
|
|||||||
SUBSEQUENT EVENT
|
16
|
MAG SILVER CORP.
|
|||||||||||
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss (Unaudited)
|
|||||||||||
(In US dollars except for shares and per share amounts)
|
|||||||||||
For the three months ended
|
|||||||||||
March 31
|
|||||||||||
Note
|
2017
|
2016
|
|||||||||
EXPENSES
|
|||||||||||
Accounting and audit
|
$
|
66
|
$
|
83
|
|||||||
Amortization
|
6
|
4
|
4
|
||||||||
Filing and transfer agent fees
|
211
|
163
|
|||||||||
Foreign exchange gain
|
(81
|
)
|
(269
|
)
|
|||||||
General office expenses
|
155
|
138
|
|||||||||
Legal
|
77
|
57
|
|||||||||
Management compensation and consulting fees
|
430
|
427
|
|||||||||
Mining concession taxes and other property costs
|
354
|
41
|
|||||||||
Share based payment expense
|
8b,c,d
|
|
367
|
579
|
|||||||
Shareholder relations
|
142
|
123
|
|||||||||
Travel
|
90
|
84
|
|||||||||
|
1,815
|
1,430
|
|||||||||
INTEREST INCOME
|
362
|
113
|
|||||||||
LOSS ON WARRANTS (MARK-TO-MARKET)
|
5
|
(20
|
)
|
-
|
|||||||
EQUITY PICK UP FROM ASSOCIATE
|
7
|
572
|
(43
|
)
|
|||||||
LOSS FOR THE PERIOD BEFORE INCOME TAX
|
$
|
( 901
|
)
|
$
|
( 1,360
|
)
|
|||||
DEFERRED INCOME TAX RECOVERY
|
15
|
589
|
63
|
||||||||
LOSS FOR THE PERIOD
|
$
|
( 312
|
)
|
$
|
( 1,297
|
)
|
|||||
OTHER COMPREHENSIVE INCOME (LOSS)
|
|||||||||||
Items that may be reclassified subsequently to profit or loss:
|
|||||||||||
UNREALIZED GAIN ON AVAILABLE-FOR-SALE
|
|||||||||||
SECURITIES, NET OF TAXES
|
5
|
13
|
1,326
|
||||||||
TOTAL COMPREHENSIVE INCOME (LOSS)
|
$
|
( 299
|
)
|
$
|
29
|
||||||
BASIC AND DILUTED LOSS PER SHARE
|
$
|
( 0.00
|
)
|
$
|
( 0.02
|
)
|
|||||
WEIGHTED AVERAGE NUMBER
|
|||||||||||
OF SHARES OUTSTANDING - BASIC AND DILUTED
|
80,715,744
|
72,772,656
|
MAG SILVER CORP.
|
|||||||||||||||||||||||||||||||||||
Condensed Interim Consolidated Statements of Changes in Equity (Unaudited)
|
|||||||||||||||||||||||||||||||||||
(In thousands of US dollars, except shares)
|
|||||||||||||||||||||||||||||||||||
Unrealized
|
Accumulated
|
||||||||||||||||||||||||||||||||||
Common shares
|
Currency
|
gain (loss) on
|
other
|
||||||||||||||||||||||||||||||||
without par value
|
Equity
|
translation
|
available-for-sale
|
comprehensive
|
Total
|
||||||||||||||||||||||||||||||
Note
|
Shares
|
Amount
|
Reserve
|
adjustment
|
securities
|
income (loss)
|
Deficit
|
equity
|
|||||||||||||||||||||||||||
Balance, January 1, 2016
|
69,407,386
|
$
|
262,218
|
$
|
19,993
|
$
|
784
|
$
|
52
|
$
|
836
|
$
|
(128,905
|
)
|
$
|
154,142
|
|||||||||||||||||||
Stock options exercised
|
8a,b
|
|
691,705
|
6,632
|
(1,973
|
)
|
-
|
-
|
-
|
-
|
4,659
|
||||||||||||||||||||||||
Stock options exercised cashless
|
8a,b
|
|
325,671
|
3,823
|
(3,823
|
)
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Restricted and performance share units converted
|
8a,c
|
|
38,692
|
327
|
(327
|
)
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Share based payment
|
8b,c,d
|
|
-
|
-
|
2,263
|
-
|
-
|
-
|
-
|
2,263
|
|||||||||||||||||||||||||
Issued for cash
|
8a
|
|
10,240,750
|
70,654
|
-
|
-
|
-
|
-
|
-
|
70,654
|
|||||||||||||||||||||||||
Unrealized gain on available-for-sale securities
|
5
|
-
|
-
|
-
|
-
|
1,198
|
1,198
|
1,198
|
|||||||||||||||||||||||||||
Gain on sale of available-for-sale securities
|
5
|
-
|
-
|
-
|
-
|
(1,152
|
)
|
(1,152
|
)
|
(1,152
|
)
|
||||||||||||||||||||||||
Net loss
|
-
|
-
|
-
|
-
|
-
|
-
|
(55,846
|
)
|
(55,846
|
)
|
|||||||||||||||||||||||||
Total Comprehensive Income (Loss)
|
-
|
-
|
-
|
-
|
46
|
46
|
(55,846
|
)
|
(55,800
|
)
|
|||||||||||||||||||||||||
Balance, December 31, 2016
|
80,704,204
|
$
|
343,654
|
$
|
16,133
|
$
|
784
|
$
|
98
|
$
|
882
|
$
|
(184,751
|
)
|
$
|
175,918
|
|||||||||||||||||||
Stock options exercised
|
8a,b
|
|
12,400
|
118
|
(32
|
)
|
-
|
-
|
-
|
-
|
86
|
||||||||||||||||||||||||
Stock options exercised cashless
|
8a,b
|
|
39,239
|
221
|
(221
|
)
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Share based payment
|
8b,c,d
|
|
-
|
-
|
367
|
-
|
-
|
-
|
-
|
367
|
|||||||||||||||||||||||||
Unrealized gain on available-for-sale securities
|
5
|
-
|
-
|
-
|
-
|
13
|
13
|
13
|
|||||||||||||||||||||||||||
Net loss
|
-
|
-
|
-
|
-
|
-
|
-
|
(312
|
)
|
(312
|
)
|
|||||||||||||||||||||||||
Total Comprehensive Income (Loss)
|
-
|
-
|
-
|
-
|
13
|
13
|
(312
|
)
|
(299
|
)
|
|||||||||||||||||||||||||
Balance, March 31, 2017
|
80,755,843
|
$
|
343,993
|
$
|
16,247
|
$
|
784
|
$
|
111
|
$
|
895
|
$
|
(185,063
|
)
|
$
|
176,072
|
|||||||||||||||||||
Three Month Comparative:
|
|||||||||||||||||||||||||||||||||||
Balance, January 1, 2016
|
69,407,386
|
$
|
262,218
|
$
|
19,993
|
$
|
784
|
$
|
52
|
$
|
836
|
$
|
(128,905
|
)
|
$
|
154,142
|
|||||||||||||||||||
Stock options exercised
|
8a,b
|
|
71,000
|
714
|
(219
|
)
|
-
|
-
|
-
|
-
|
495
|
||||||||||||||||||||||||
Stock options exercised cashless
|
8a,b
|
|
77,529
|
1,482
|
(1,482
|
)
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Share based payment expense
|
8b,c,d
|
|
-
|
-
|
579
|
-
|
-
|
-
|
-
|
579
|
|||||||||||||||||||||||||
Issued for cash
|
8a
|
|
10,240,750
|
70,699
|
-
|
-
|
-
|
-
|
-
|
70,699
|
|||||||||||||||||||||||||
Unrealized gain on marketable securities
|
4
|
-
|
-
|
-
|
-
|
1,326
|
1,326
|
-
|
1,326
|
||||||||||||||||||||||||||
Net loss
|
-
|
-
|
-
|
-
|
-
|
-
|
(1,297
|
)
|
(1,297
|
)
|
|||||||||||||||||||||||||
Total Comprehensive Income (Loss)
|
-
|
-
|
-
|
-
|
1,326
|
1,326
|
(1,297
|
)
|
29
|
||||||||||||||||||||||||||
Balance, March 31, 2016
|
79,796,665
|
$
|
335,113
|
$
|
18,871
|
$
|
784
|
$
|
1,378
|
$
|
2,162
|
$
|
(130,202
|
)
|
$
|
225,944
|
MAG SILVER CORP.
|
|||||||||||
Condensed Interim Consolidated Statements of Cash Flows (Unaudited)
|
|||||||||||
(In thousands of US dollars, unless otherwise stated)
|
|||||||||||
For the three months ended
|
|||||||||||
March 31
|
|||||||||||
Note
|
2017
|
2016
|
|||||||||
OPERATING ACTIVITIES
|
|||||||||||
Loss for the period
|
$
|
(312
|
)
|
$
|
(1,297
|
)
|
|||||
Items not involving cash:
|
|||||||||||
Amortization
|
6
|
4
|
4
|
||||||||
Deferred income tax recovery
|
15
|
(589
|
)
|
(63
|
)
|
||||||
Equity pick up from associate
|
7
|
(572
|
)
|
43
|
|||||||
Loss on warrants (mark-to-market)
|
5
|
20
|
-
|
||||||||
Share based payment expense
|
8b,c,d
|
|
367
|
579
|
|||||||
Unrealized foreign exchange loss
|
(78
|
)
|
(281
|
)
|
|||||||
Changes in operating assets and liabilities
|
|||||||||||
Accounts receivable
|
(131
|
)
|
126
|
||||||||
Prepaid expenses
|
(388
|
)
|
(306
|
)
|
|||||||
Trade and other payables
|
(1
|
)
|
33
|
||||||||
Net cash used in operating activities
|
(1,680
|
)
|
(1,162
|
)
|
|||||||
INVESTING ACTIVITIES
|
|||||||||||
Exploration and evaluation expenditures
|
-
|
(663
|
)
|
||||||||
Investment in associate
|
7
|
(4,378
|
)
|
(3,034
|
)
|
||||||
Purchase of equipment
|
6
|
-
|
(11
|
)
|
|||||||
Investment in securities
|
5
|
(11
|
)
|
-
|
|||||||
Net cash used in investing activities
|
(4,389
|
)
|
(3,708
|
)
|
|||||||
FINANCING ACTIVITIES
|
|||||||||||
Issuance of common shares upon exercise of stock options
|
8
|
86
|
495
|
||||||||
Issuance of common shares, net of share issue costs
|
8
|
-
|
70,699
|
||||||||
Net cash from financing activities
|
86
|
71,194
|
|||||||||
EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
|
|||||||||||
78 | 280 | ||||||||||
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
|
(5,905
|
)
|
66,604
|
||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
83,347
|
75,424
|
|||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
$
|
77,442
|
$
|
142,028
|
|||||||
TERM DEPOSITS (Maturities in excess of 90 days)
|
3
|
$
|
55,000
|
$
|
-
|
|
Computer equipment
|
30% declining balance |
|
|
Field equipment |
30% declining balance
|
|
|
Leasehold improvements
|
straight line over lease term |
|
(i)
|
Adoption of new and amended IFRS pronouncements
|
(ii)
|
Recent accounting pronouncements
|
Interest
|
March 31,
|
December 31,
|
||||||||||
Rate
|
2017
|
2016
|
||||||||||
Cash at bank and on hand
|
0-.95
|
%
|
$
|
27,422
|
$
|
33,347
|
||||||
Short-term deposit
|
1.33
|
%
|
50,000
|
50,000
|
||||||||
Cash and cash equivalents
|
$
|
77,422
|
$
|
83,347
|
Interest
|
March 31,
|
December 31,
|
||||||||||
Rate
|
2017
|
2016
|
||||||||||
Term deposit with maturity of April 18, 2017
|
1.20
|
%
|
$
|
55,000
|
$
|
55,000
|
March 31,
|
December 31,
|
|||||||
2017
|
2016
|
|||||||
Goods and services tax ("GST") recoverable
|
$
|
46
|
$
|
19
|
||||
Mexican value added tax ("IVA") recoverable
|
54
|
37
|
||||||
Interest receivable
|
659
|
572
|
||||||
$
|
759
|
$
|
628
|
March 31,
|
December 31,
|
|||||||
2017
|
2016
|
|||||||
Available-for-sale securities
|
$
|
574
|
$
|
550
|
||||
Fair value through profit or loss - warrants
|
148
|
168
|
||||||
$
|
722
|
$
|
718
|
March 31,
|
December 31,
|
|||||||
2017
|
2016
|
|||||||
Available-for-sale securities, beginning of period
|
$
|
550
|
$
|
279
|
||||
Purchase of available-for-securities
|
11
|
442
|
||||||
Unrealized gain for the period
|
13
|
1,198
|
||||||
Sale of available-for-sale securities
|
-
|
(1,369
|
)
|
|||||
Available-for-sale securities, end of period
|
$
|
574
|
$
|
550
|
Cost
|
Computer equipment
|
Field & Office equipment
|
Leasehold improvements
|
Total
|
||||||||||||
Balance, January 1, 2016
|
$
|
252
|
$
|
163
|
$
|
7
|
$
|
422
|
||||||||
Additions
|
39
|
-
|
-
|
39
|
||||||||||||
Balance, December 31, 2016
|
$
|
291
|
$
|
163
|
$
|
7
|
$
|
461
|
||||||||
Additions
|
-
|
-
|
-
|
-
|
||||||||||||
Balance, March 31, 2017
|
$
|
291
|
$
|
163
|
$
|
7
|
$
|
461
|
||||||||
Accumulated depreciation
|
Computer equipment
|
Field & Office equipment
|
Leasehold improvements
|
Total
|
||||||||||||
Balance as at January 1, 2016
|
$
|
226
|
$
|
151
|
$
|
7
|
$
|
384
|
||||||||
Amortization
|
19
|
4
|
-
|
23
|
||||||||||||
Balance, December 31, 2016
|
$
|
245
|
$
|
155
|
$
|
7
|
$
|
407
|
||||||||
Amortization
|
3
|
1
|
-
|
4
|
||||||||||||
Balance, March 31, 2017
|
$
|
248
|
$
|
156
|
$
|
7
|
$
|
411
|
||||||||
Carrying amounts
|
Computer equipment
|
Field & Office equipment
|
Leasehold improvements
|
Total
|
||||||||||||
At December 31, 2016
|
$
|
46
|
$
|
8
|
$
|
-
|
$
|
54
|
||||||||
At March 31, 2017
|
$
|
43
|
$
|
7
|
$
|
-
|
$
|
50
|
March 31,
|
December 31,
|
|||||||
2017
|
2016
|
|||||||
Joint venture oversight expenditures incurred 100% by MAG
|
$
|
320
|
$
|
262
|
||||
Cash contributions to Minera Juanicipio (1)
|
4,180
|
7,137
|
||||||
Total for the current period
|
4,500
|
7,399
|
||||||
Equity pick up of current income (loss) for the period (2)
|
572
|
(1,327
|
)
|
|||||
Balance, beginning of period
|
37,312
|
31,240
|
||||||
|
|
|||||||
Balance, end of period
|
$
|
42,384
|
$
|
37,312
|
||||
(1) Represents the Company's 44% share of Minera Juanicipio cash contributions for the period.
|
||||||||
(2) Represents the Company's 44% share of Minera Juanicipio's income (loss) for the period, as determined by the Company.
|
||||||||
|
March 31,
|
December 31,
|
|||||||
2017
|
2016
|
|||||||
Cash
|
$
|
3,523
|
$
|
3,573
|
||||
IVA and other receivables
|
2,090
|
842
|
||||||
Prepaids
|
24
|
-
|
||||||
Total current assets
|
5,637
|
4,415
|
||||||
Minerals, surface rights, exploration & development expenditures
|
90,293
|
82,017
|
||||||
Total assets
|
$
|
95,930
|
$
|
86,432
|
||||
Payables to Peñoles and other vendors
|
$
|
411
|
$
|
348
|
||||
Total current liabilities
|
411
|
348
|
||||||
Provision for reclamation and remediation costs
|
350
|
313
|
||||||
Deferred income tax liability
|
6,523
|
7,926
|
||||||
Total liabilities & equity
|
7,284
|
8,587
|
||||||
Shareholders' equity
|
88,646
|
77,845
|
||||||
Total liabilities & equity
|
$
|
95,930
|
$
|
86,432
|
March 31,
|
December 31,
|
|||||||
2016
|
2016
|
|||||||
Deferred income tax recovery
|
$
|
1,403
|
$
|
(2,134
|
)
|
|||
Exchange loss
|
(103
|
)
|
(881
|
)
|
||||
Net income (loss )
|
$
|
1,300
|
$
|
(3,015
|
)
|
|||
MAG's 44% equity pick up
|
$
|
572
|
$
|
(1,327
|
)
|
Weighted
|
Weighted
|
|||||||||||||||
Period ended
|
average
|
Year ended
|
average
|
|||||||||||||
March 31,
|
exercise price
|
December 31,
|
exercise price
|
|||||||||||||
2017
|
(C$/option)
|
2016
|
(C$/option)
|
|||||||||||||
Balance outstanding, beginning of period
|
2,254,172
|
$
|
8.71
|
3,843,105
|
$
|
8.71
|
||||||||||
Granted
|
-
|
-
|
227,773
|
17.55
|
||||||||||||
Exercised for cash
|
(12,400
|
)
|
9.28
|
(691,705
|
)
|
8.79
|
||||||||||
Exercised cashless
|
(75,000
|
)
|
9.15
|
(1,125,001
|
)
|
10.46
|
||||||||||
Balance outstanding, end of period
|
2,166,772
|
$
|
8.69
|
2,254,172
|
$
|
8.71
|
Exercise price
|
Number
|
Number
|
Weighted average remaining
|
||||
($C/option)
|
outstanding
|
exercisable
|
contractual life (years)
|
||||
(1)
|
5.35
|
500,000
|
500,000
|
1.54
|
|||
5.86
|
455,000
|
455,000
|
1.21
|
||||
9.15
|
60,000
|
60,000
|
0.34
|
||||
9.16
|
21,666
|
-
|
3.45
|
||||
9.28
|
372,333
|
252,333
|
3.68
|
||||
(1)
|
9.61
|
75,000
|
75,000
|
0.92
|
|||
10.02
|
187,500
|
133,333
|
3.23
|
||||
10.04
|
267,500
|
267,500
|
2.25
|
||||
17.55
|
227,773
|
-
|
4.68
|
||||
C$5.35 - C$17.55
|
2,166,772
|
1,743,166
|
2.37
|
||||
(1)
|
Inducement options issued outside the Company's Plan as an incentive to attract
|
||||||
senior officers for employment.
|
March 31,
|
December 31,
|
|||||||
2017
|
2016
|
|||||||
Equity
|
$
|
176,072
|
$
|
175,918
|
||||
Cash, cash equivalents and term deposits
|
(132,442
|
)
|
(138,347
|
)
|
||||
$
|
43,630
|
$
|
37,571
|
March 31,
|
December 31,
|
|||||||
2017
|
2016
|
|||||||
Cash and cash equivalents
|
$
|
77,442
|
$
|
83,347
|
||||
Term deposits
|
55,000
|
55,000
|
||||||
Accounts receivable (see Note 4)
|
759
|
628
|
||||||
$
|
133,201
|
$
|
138,975
|
March 31, 2017 (in 000's of US$ equivalent)
|
Mexican peso
|
Canadian dollar
|
||||||
Cash
|
$
|
5
|
$
|
6,781
|
||||
Accounts receivable
|
54
|
51
|
||||||
Prepaid
|
6
|
-
|
||||||
Investments
|
-
|
722
|
||||||
Accounts payable
|
(125
|
)
|
(525
|
)
|
||||
Net assets exposure (US$ equivalent)
|
$
|
(60
|
)
|
$
|
7,029
|
|||
March 31, 2016 (in 000's of US$ equivalent)
|
Mexican peso
|
Canadian dollar
|
||||||
Cash
|
$
|
101
|
$
|
6,118
|
||||
Accounts receivable
|
126
|
76
|
||||||
Prepaid
|
9
|
-
|
||||||
Marketable securities
|
-
|
1,605
|
||||||
Accounts payable
|
(141
|
)
|
(392
|
)
|
||||
Net assets exposure (US$ equivalent)
|
$
|
95
|
$
|
7,407
|
Three months ended, March 31, 2017
|
||||||||||||||||||||
FVTPL
|
Available for sale
|
Loans and receivables
|
Other liabilities
|
Total
|
||||||||||||||||
Financial assets
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
77,442
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
77,442
|
||||||||||
Term deposits
|
-
|
-
|
55,000
|
-
|
55,000
|
|||||||||||||||
Accounts receivables (Note 4)
|
-
|
-
|
759
|
-
|
759
|
|||||||||||||||
Investments (Note 5)
|
148
|
574
|
-
|
-
|
722
|
|||||||||||||||
Financial liabilities
|
||||||||||||||||||||
Trade and other payables
|
-
|
-
|
-
|
854
|
854
|
|||||||||||||||
Year ended December 31, 2016
|
||||||||||||||||||||
FVTPL
|
Available for sale
|
Loans and receivables
|
Other liabilities
|
Total
|
||||||||||||||||
Financial assets
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
83,347
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
83,347
|
||||||||||
Term deposits
|
-
|
-
|
55,000
|
-
|
55,000
|
|||||||||||||||
Accounts receivables (Note 4)
|
-
|
-
|
628
|
-
|
628
|
|||||||||||||||
Investments (Note 5)
|
168
|
550
|
-
|
-
|
718
|
|||||||||||||||
Financial liabilities
|
||||||||||||||||||||
Trade and other payables
|
-
|
-
|
-
|
733
|
733
|
Three months ended, March 31, 2017
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Cash and cash equivalents
|
$
|
77,442
|
$
|
-
|
$
|
-
|
$
|
77,442
|
||||||||
Term deposits
|
55,000
|
-
|
-
|
55,000
|
||||||||||||
Investments (Note 5)(1)
|
20
|
702
|
-
|
722
|
||||||||||||
$
|
132,462
|
$
|
702
|
$
|
-
|
$
|
133,164
|
|||||||||
Year ended December 31, 2016
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Cash and cash equivalents
|
$
|
83,347
|
$
|
-
|
$
|
-
|
$
|
83,347
|
||||||||
Term deposits
|
55,000
|
-
|
-
|
55,000
|
||||||||||||
Investments (Note 5)(1)
|
15
|
703
|
-
|
718
|
||||||||||||
$
|
138,362
|
$
|
703
|
$
|
-
|
$
|
139,065
|
During the period, the Company incurred expenses with Cascabel and IMDEX as follows:
|
||||||||
Three months ended March 31,
|
||||||||
2017
|
2016
|
|||||||
Fees related to Dr. Megaw:
|
||||||||
Exploration and marketing services
|
$
|
70
|
$
|
70
|
||||
Travel and expenses
|
28
|
22
|
||||||
Other fees to Cascabel and IMDEX:
|
||||||||
Administration for Mexican subsidiaries
|
29
|
30
|
||||||
Field exploration services
|
111
|
163
|
||||||
$
|
238
|
$
|
285
|
Significant subsidiaries of the Company are as follows:
|
||||
MAG' effective interest
|
||||
Name
|
Country of Incorporation
|
Principal Activity
|
2017 (%)
|
2016 (%)
|
Minera Los Lagartos, S.A. de C.V.
|
Mexico
|
Exploration
|
100%
|
100%
|
Minera Pozo Seco S.A. de C.V.
|
Mexico
|
Exploration
|
100%
|
100%
|
Minera Sierra Vieja S.A. de C.V.
|
Mexico
|
Exploration
|
100%
|
100%
|
During the period, compensation of key management personnel (including directors) was as follows:
|
||||||||
Three months ended March 31,
|
||||||||
2017
|
2016
|
|||||||
Salaries and other short term employee benefits
|
$
|
257
|
$
|
248
|
||||
Share based payments (Note 8(b), (c ), and (d))
|
158
|
484
|
||||||
$
|
415
|
$
|
732
|
Office Lease
|
||||
2017
|
100
|
|||
2018
|
133
|
|||
2019
|
136
|
|||
$
|
369
|
March 31,
|
March 31,
|
|||||||
2017
|
2016
|
|||||||
Current tax recovery (expense)
|
$
|
-
|
$
|
-
|
||||
Deferred tax recovery (expense)
|
589
|
63
|
||||||
Total income tax recovery
|
$
|
589
|
$
|
63
|
![]() |
MAG SILVER CORP.
Management's Discussion & Analysis
For the three months ended
March 31, 2017
|
Dated: May 11, 2017
|
✓
|
At Juanicipio, as a result of the significant mineralized discoveries beneath the Bonanza zone, Fresnillo plc and the Company have been considering alternate mine plans and other project enhancements to maximize the value of both the Bonanza Zone and the new Deep Zone. Considerations include increasing the processing plant nameplate capacity from 2,650 tonnes per day to 4,000 tonnes per day and sinking an internal shaft (or winze) to access the deeper zone sooner.
|
✓
|
Fresnillo has indicated that permitting based on the upgraded design has already commenced, and that it expects its Board to give formal project development approval in the second quarter 2017.
|
✓
|
A new resource estimate and the design upgrades are planned to be incorporated into a revised mine plan and a new MAG technical report, anticipated to be completed in the second quarter of 2017 and form the basis for MAG's formal project development approval.
|
✓
|
The Juanicipio underground ramp decline reached the uppermost reaches of the Valdecañas Vein in December 2016 and intensified underground development has commenced to allow for the planned increase in processing capacity.
|
✓
|
Assays from 13 additional exploration and infill drill holes were released in the quarter (see Press Release February 14, 2017), which along with the previously announced results (see Press Releases August 15, 2016 and April 23, 2015) have:
|
•
|
confirmed that continuous mineralization extends below the Valdecañas Bonanza Grade mineralization in both the East and West Veins;
|
•
|
revealed a substantial widening of this deeper mineralization into a well-defined dilatant zone; and,
|
•
|
resulted in the discovery of the new "Anticipada Vein", within the vein system.
|
✓
|
A 20,000 metre 2017 exploration drill program for Minera Juanicipio was initiated subsequent to the quarter end, and will test various targets within the Joint Venture boundaries.
|
✓
|
The Company remains well funded, with cash, cash equivalents, and term deposits totaling $132,442 as at March 31, 2017.
|
Three months ended March 31,
|
2017
|
2016
|
||||||
Joint venture oversight expenditures incurred 100% by MAG
|
$
|
320
|
$
|
75
|
||||
Cost recoveries
|
-
|
(104
|
)
|
|||||
Cash contributions to Minera Juanicipio
|
4,180
|
3,067
|
||||||
Total for the current period
|
4,500
|
3,038
|
||||||
Equity pick up of current income (loss) for the period
|
572
|
(43
|
)
|
|||||
Balance, beginning of period
|
37,312
|
31,240
|
||||||
Balance, end of period
|
$
|
42,384
|
$
|
34,235
|
Three months ended March 31,
|
2017
|
2016
|
||||||
EXPENSES
|
||||||||
Accounting and audit
|
$
|
66
|
$
|
83
|
||||
Amortization
|
4
|
4
|
||||||
Filing and transfer agent fees
|
211
|
163
|
||||||
Foreign exchange gain
|
(81
|
)
|
(269
|
)
|
||||
General office expenses
|
155
|
138
|
||||||
Legal
|
77
|
57
|
||||||
Management compensation and consulting fees
|
430
|
427
|
||||||
Mining concession taxes and other property costs
|
354
|
41
|
||||||
Share based payment expense
|
367
|
579
|
||||||
Shareholder relations
|
142
|
123
|
||||||
Travel
|
90
|
84
|
||||||
|
1,815
|
1,430
|
||||||
Interest income
|
362
|
113
|
||||||
Loss on warrants (mark-to-market)
|
(20
|
)
|
-
|
|||||
Equity pick up from associate
|
572
|
(43
|
)
|
|||||
Loss for the period before income taxes
|
$
|
( 901
|
)
|
$
|
( 1,360
|
)
|
||
Deferred income tax recovery
|
589
|
63
|
||||||
Loss for the period
|
$
|
( 312
|
)
|
$
|
( 1,297
|
)
|
Three months ended March 31,
|
2017
|
2016
|
||||||
Loss for the period
|
$
|
( 312
|
)
|
$
|
( 1,297
|
)
|
||
OTHER COMPREHENSIVE INCOME (LOSS)
|
||||||||
Items that may be reclassified subsequently to profit or loss:
|
||||||||
Unrealized gain on available-for-sale securities, net of tax
|
13
|
1,326
|
||||||
Total comprehensive income (loss)
|
$
|
( 299
|
)
|
$
|
29
|
Quarter Ending
|
Revenue(1)
|
Net Loss(2)
|
Net Loss per Share
|
March 31, 2017
|
$362
|
$(312)
|
$(0.00)
|
December 31, 2016
|
$351
|
$(50,337)
|
$(0.62)
|
September 30, 2016
|
$348
|
$(1,985)
|
$(0.02)
|
June 30, 2016
|
$303
|
$(2,227)
|
$(0.03)
|
March 31, 2016
|
$113
|
$(1,297)
|
$(0.02)
|
December 31, 2015
|
$64
|
$(10,169)
|
$(0.15)
|
September 30, 2015
|
$66
|
$(1,988)
|
$(0.03)
|
June 30, 2015
|
$68
|
$(2,136)
|
$(0.03)
|
(1) |
The Company's only source of revenue during the quarters listed above was interest earned on bank cash, cash equivalent and term deposit balances. The amount of interest revenue earned correlates directly to the amount of cash, cash equivalents and term deposits on hand during the period referenced and prevailing interest rates. At this time, the Company has no operating revenues.
|
(2) |
Net losses by quarter are often materially affected by the timing and recognition of large non-cash expenses (specifically share based payments, exploration and evaluation property impairments, and deferred tax expense) as discussed when applicable in "Review of Financial Results" above.
|
Three months ended March 31,
|
2017
|
2016
|
||||||
Operations
|
$
|
(1,161
|
)
|
$
|
(1,015
|
)
|
||
Changes in non-cash working capital
|
(519
|
)
|
(147
|
)
|
||||
Operating activities
|
(1,680
|
)
|
(1,162
|
)
|
||||
Investing activities
|
(4,389
|
)
|
(3,708
|
)
|
||||
Financing activities
|
86
|
71,194
|
||||||
Change in cash and cash equivalents during the period
|
(5,983
|
)
|
66,324
|
|||||
Effects of exchange rate changes on cash and cash equivalents
|
78
|
280
|
||||||
Cash and cash equivalents, beginning of period
|
83,347
|
75,424
|
||||||
Cash and cash equivalents, end of period
|
$
|
77,442
|
$
|
142,028
|
||||
Term deposits, end of period
|
$
|
55,000
|
$
|
-
|
March 31, 2017
|
March 31, 2016
|
|||||||
Cash and cash equivalents
|
$
|
77,442
|
$
|
142,028
|
||||
Term deposits
|
55,000
|
-
|
||||||
Other current assets
|
2,050
|
2,263
|
||||||
Total current assets
|
134,492
|
144,291
|
||||||
Equipment
|
50
|
45
|
||||||
Investment in associate
|
42,384
|
34,235
|
||||||
Exploration and evaluation assets
|
-
|
53,270
|
||||||
Total assets
|
$
|
176,926
|
$
|
231,841
|
||||
Total current liabilities
|
$
|
854
|
$
|
795
|
||||
Deferred income taxes
|
-
|
5,102
|
||||||
Total liabilities
|
854
|
5,897
|
||||||
Total equity
|
176,072
|
225,944
|
||||||
Total liabilities and equity
|
$
|
176,926
|
$
|
231,841
|
Intended Use of Proceeds
|
Expected Use of Proceeds July 9, 2014
|
Estimated Actual Use of Net Proceeds to date (1)
|
Expected Use of Proceeds February 23, 2016
|
Estimated Actual Use of Net Proceeds to date
|
|
(000s of $C)
|
(000s of $C)
|
(000s of $US)
|
(000s of $US)
|
Exploration expenditures at the Juanicipio Property
|
$3,000
|
$3,350 (2)
|
$5,000
|
$1,983
|
Development expenditures at the Juanicipio Property
|
$71,470
|
$27,808 (3)
|
$50,000
|
$ - (3)
|
Development contingency at the Juanicipio Property
|
$ -
|
$ -
|
$7,500
|
$ -
|
|
Total
|
Less
than 1
year
|
1-3 Years
|
3-5 Years
|
More
than 5
years
|
Property Option Payments, Exploration and Development Expenditures – Total (1)
|
$ -
|
$ -
|
$ -
|
$ -
|
$ -
|
|
|
|
|||
Office Lease
|
337
|
129
|
208
|
-
|
-
|
Total Obligations
|
$ 337
|
$ 129
|
$ 208
|
$ -
|
$ -
|
Number of
|
Exercise Price or
|
Remaining
|
|
Shares
|
Conversion Ratio
|
Life
|
|
Capital Stock
|
80,755,843
|
||
Stock Options
|
2,166,772
|
$5.35 - $17.55
|
0.2 to 4.5 years
|
Performance Share Units("PSUs") (1)
|
140,203 (1)
|
1:1
|
3.6 to 4.6 years
|
Restricted Share Units("RSUs")
|
46,520
|
1:1
|
2.2 to 3.1 years
|
Deferred Share Units ("DSUs")
|
376,221
|
1:1
|
n/a (2)
|
Fully Diluted
|
83,485,559
|
During the period, the Company incurred expenses with Cascabel and IMDEX as follows:
|
||||||||
Three months ended March 31,
|
2017
|
2016
|
||||||
Fees related to Dr. Megaw:
|
||||||||
Exploration and marketing services
|
$
|
70
|
$
|
70
|
||||
Travel and expenses
|
28
|
22
|
||||||
Other fees to Cascabel and IMDEX:
|
||||||||
Administration for Mexican subsidiaries
|
29
|
30
|
||||||
Field exploration services
|
111
|
163
|
||||||
|
$
|
238
|
$
|
285
|
Significant subsidiaries of the Company are as follows:
|
||||
|
|
|
MAG' effective interest
|
|
Name
|
Country of Incorporation
|
Principal Activity
|
2017 (%)
|
2016
|
|
||||
Minera Los Lagartos, S.A. de C.V.
|
Mexico
|
Exploration
|
100%
|
100%
|
Minera Pozo Seco S.A. de C.V.
|
Mexico
|
Exploration
|
100%
|
100%
|
Minera Sierra Vieja S.A. de C.V.
|
Mexico
|
Exploration
|
100%
|
100%
|
During the period, compensation of key management personnel (including directors) was as follows:
|
||||||||
Three months ended March 31,
|
2017
|
2016
|
||||||
Salaries and other short term employee benefits
|
$
|
257
|
$
|
248
|
||||
Share based payments
|
158
|
484
|
||||||
|
$
|
415
|
$
|
732
|
1. |
Review: I have reviewed the interim financial report and interim MD&A (together, the "interim filings") of MAG Silver Corp. (the "issuer") for the interim period ended March 31, 2017.
|
2. |
No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.
|
3. |
Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
|
4. |
Responsibility: The issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings, for the issuer.
|
5. |
Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer(s) and I have, as at the end of the period covered by the interim filings:
|
(a) |
designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that:
|
(i) |
material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and
|
(ii) |
information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and
|
(b) |
designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.
|
5.1 |
Control framework: The control framework the issuer's other certifying officer(s) and I used to design the issuer's ICFR is Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
|
5.2 |
ICFR – material weakness relating to design: N/A
|
5.3 |
Limitation on scope of design: N/A
|
6. |
Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer's ICFR that occurred during the period beginning on January 1, 2017 and ended on March 31, 2017 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.
|
1. |
Review: I have reviewed the interim financial report and interim MD&A (together, the "interim filings") of MAG Silver Corp. (the "issuer") for the interim period ended March 31, 2017.
|
2. |
No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.
|
3. |
Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
|
4. |
Responsibility: The issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings, for the issuer.
|
5. |
Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer(s) and I have, as at the end of the period covered by the interim filings:
|
(a) |
designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that:
|
(i) |
material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and
|
(ii) |
information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and
|
(b) |
designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.
|
5.1 |
Control framework: The control framework the issuer's other certifying officer(s) and I used to design the issuer's ICFR is Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
|
5.2 |
ICFR – material weakness relating to design: N/A
|
5.3 |
Limitation on scope of design: N/A
|
6. |
Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer's ICFR that occurred during the period beginning on January 1, 2017 and ended on March 31, 2017 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.
|
![]() |
#770 – 800 West Pender Street
Vancouver, BC V6C 2B5
P: 604-630-1399
F: 604-681-0894
|
MAG Silver Corp.
|
May 12, 2017
|
For Immediate Release |
NR#17-04
|
·
|
At Juanicipio, as a result of the significant mineralized discoveries beneath the Bonanza zone, Fresnillo plc and the Company have been considering alternate mine plans and other project enhancements to maximize the value of both the Bonanza Zone and the new Deep Zone. Considerations include increasing the processing plant nameplate capacity from 2,650 tonnes per day to 4,000 tonnes per day and sinking an internal shaft (or winze) to access the deeper zone sooner.
|
·
|
Fresnillo has indicated that permitting based on the upgraded design has already commenced, and that it expects its Board to give formal project development approval in the second quarter 2017.
|
·
|
A new resource estimate and the design upgrades are planned to be incorporated into a revised mine plan and a new MAG technical report, anticipated to be completed in the second quarter of 2017 and form the basis for MAG's formal project development approval.
|
·
|
The Juanicipio underground ramp decline reached the uppermost reaches of the Valdecañas Vein in December 2016 and intensified underground development has commenced to allow for the planned increase in processing capacity.
|
·
|
Assays from 13 additional exploration and infill drill holes were released in the quarter (see Press Release February 14, 2017), which along with the previously announced results (see Press Releases August 15, 2016 and April 23, 2015) have:
|
•
|
confirmed that continuous mineralization extends below the Valdecañas Bonanza Grade mineralization in both the East and West Veins;
|
•
|
revealed a substantial widening of this deeper mineralization into a well-defined dilatant zone; and,
|
•
|
resulted in the discovery of the new "Anticipada Vein", within the vein system.
|
·
|
A 20,000 metre 2017 exploration drill program for Minera Juanicipio was initiated subsequent to the quarter end, and will test various targets within the Joint Venture boundaries.
|
·
|
The Company remains well funded, with cash, cash equivalents, and term deposits totaling $132,442 as at March 31, 2017.
|
For further information on behalf of MAG Silver Corp.
Contact Michael J. Curlook, VP Investor Relations and Communications
|
|||||
Website:
Phone:
Toll free:
|
www.magsilver.com
(604) 630-1399
(866) 630-1399
|
Email:
Fax:
|
info@magsilver.com
(604) 681-0894
|
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