12/17/2012 01:20 EST | Updated 02/15/2013 05:12 EST

First Majestic acquires Orko Silver for $387 million in friendly deal

VANCOUVER - First Majestic Silver Corp. is strengthening its presence in Mexico by acquiring Orko Silver Corp. for $387 million.

The friendly acquisition will give First Majestic (TSX:FR) access to Orko's (TSXV:OK) large silver deposits in the state of Durango.

The offer values each Orko share at $2.72, a premium of more than 70 per cent over its closing price of $1.58 on Friday.

Both companies say the transaction would be attractive to their respective shareholders.

The deal still needs shareholder and regulatory approvals.

Both companies are based in Vancouver.