First Majestic will buy 2.7 million units at C75c per unit and purchase $1.25 million of an $8 million private placement on the same terms, which Blackrock announced earlier. Each unit is comprised of one share and half a warrant exercisable at $1.15 for two years.

"This strategic investment by First Majestic represents a validation of the potential at our Tonopah West silver-gold project in Nevada," said Blackrock Silver president and CEO Andrew Pollard.

The investment signals continuing diversification from its Mexico production base and into Nevada for First Majestic. In March, the producer agreed to buy the Jerritt Canyon operation from Sprott Mining for $470 million in stock. In 2020, Jerritt Canyon produced 112,749 ounces of gold.

Blackrock said it is working towards delivering a maiden resource estimate on Tonopah West.

Shares in Blackrock Silver are trading at 88c, valuing the company at $108 million.

Shares in First Majestic Silver are trading at $21.01, valuing the company at $5.3 billion.