14.	SRELATED PARTY TRANSACTIONS

The Company does

not

have offices or direct personnel in Mexico, but rather is party to a Field Services Agreement, whereby it has contracted administrative and exploration services in Mexico with MINERA CASCABEL S.A. de C.V. (“Cascabel”) and IMDEX Inc. (“IMDEX”). Dr. Peter Megaw, the Company's Chief Exploration Officer, is a principal of both IMDEX and Cascabel, and is remunerated by the Company through fees to IMDEX. In addition to corporate executive responsibilities with MAG, Dr. Megaw is responsible for the planning, execution and assessment of the Company's exploration programs, and he and his team developed the geologic concepts and directed the acquisition of the Juanicipio Project.

During the year, the Company incurred charges with Cascabel and IMDEX as follows:

		December 31,		December 31,
		2020		2019

Fees related to Dr. Megaw:
Exploration and marketing services	$	505	$	420
Travel and expenses		12		72
Other fees to Cascabel and IMDEX:
Administration for Mexican subsidiaries		54		59
Field exploration services		160		298
	$	731	$	849

All transactions are incurred in the normal course of business, and are negotiated on terms between the parties which are believed to represent fair market value for all services rendered. A portion of the expenditures are incurred on the Company's behalf, and are charged to the Company on a “cost +

10%”

basis. The services provided do

not

include drilling and assay work which are contracted out independently from Cascabel and IMDEX. Included in trade and other payables at

December 31, 2020

$78

related to these services (

December 31, 2019:

$102

Any amounts due to related parties arising from the above transactions are unsecured, non-interest bearing and are due upon receipt of invoices.

The Company holds various mineral property claims in Mexico upon which full impairments have been recognized. The Company is obligated to a

2.5%

NSR royalty on the Cinco de Mayo property payable to the principals of Cascabel under the terms of an option agreement dated

February 26, 2004,

whereby the Company acquired a

100%

interest in the property from Cascabel, and under the terms of assignment agreements entered into by Cascabel with its principals.

The immediate parent and ultimate controlling party of the consolidated group is MAG Silver Corp. (incorporated in British Columbia, Canada).

The details of the Company's significant subsidiaries and controlling ownership interests are as follows:

Significant subsidiaries of the Company are as follows:

	Country of	Principal	MAG's effective interest
Name	Incorporation	Project	2020 (%)			2019(%)

Minera Los Lagartos, S.A. de C.V.	Mexico	Juanicipio (44%)		100	%		100	%

Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are

not

disclosed in this note.

Minera Juanicipio, S.A. de C.V. (“Minera Juanicipio”), created for the purpose of holding and operating the Juanicipio Property, is held

56%

by Fresnillo plc (“Fresnillo”) and

44%

by the Company through Minera Los Lagartos, S.A. de C.V. Fresnillo is the operator of Minera Juanicipio, and with its affiliates, beneficially owns

10.3%

of the common shares of the Company as at

December 31, 2020,

as publicly reported. Minera Juanicipio is governed by a shareholders agreement. All costs relating to the project and Minera Juanicipio are required to be shared by the Company and Fresnillo pro-rata based on their ownership interests in Minera Juanicipio (see

Note

During the year, Fresnillo and the Company advanced

$144,800

as shareholder loans (MAG's

44%

$63,712

) to Minera Juanicipio, bearing interest at Libor +

2%.

The interest accrued within Minera Juanicipio was capitalized to ‘Mineral Interests, plant and equipment' and the interest recorded by the Company on the loan totaling

$567

has therefore been credited to the Investment in Juanicipio account as an eliminating related party entry. The loans mature on

June 24, 2021 (

see

Note

During the year, compensation of key management personnel (including directors) was as follows:

		December 31,		December 31,
		2020		2019
Salaries and other short term employee benefits	$	1,726	$	1,694
Share based payments (Note 9(b), (c ), and (d))		1,853		1,429
	$	3,579	$	3,123

Key management personnel

are those persons having authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly, and consists of its Directors, the Chief Executive Officer and the Chief Financial Officer.