UPDATE 1-Fresnillo raises stake in MAG Silver to 14.7 pct

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Sept 23 (Reuters) - London-listed Mexican miner Fresnillo Ltd (FRES.L) said it has increased its stake in Canada's MAG Silver Corp (MAG.TO) (MVG.A) to 14.7 percent.

Shares of MAG Silver rose about 16 percent in afternoon trade on the Toronto Stock Exchange following the announcement.

Fresnillo, the world's biggest primary silver producer, said it has acquired additional 5 million common shares of MAG Silver at a price of C$5.31 a share, raising the total number of shares it owns to 7.2 million.

In addition, Fresnillo, a unit of Mexico's Penoles (PENOLES.MX), said it intends to continue to acquire additional MAG Silver common shares.

Shares of MAG Silver are currently trading at C$6.70.

($1=1.035 Canadian Dollar) (Reporting by Krishna Chaithanya in Bangalore) ((krishna.chaithanya@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging:krishna.chaithanya.reuters.com@reuters.net))