Business
First Majestic Announces Closing Sale of La Guitarra to Sierra Madre
Vancouver, British Columbia--(Newsfile Corp. - March 30, 2023) - First Majestic Silver Corp. (NYS...
About this update from Sierra Madre Gold & Silver Ltd.
[{"type":"text","content":"First Majestic Announces Closing Sale of La Guitarra to Sierra MadreVancouver, British Columbia--(Newsfile Corp. - March 30, 2023) - First Majestic Silver Corp. (NYSE: AG) (TSX: FR) (FSE: FMV) (the \"Company\" or \"First Majestic\") is pleased to announce that it has closed its previously announced transaction to sell its 100% owned past producing La Guitarra Silver Mine to Sierra Madre Gold & Silver Ltd. (\"Sierra Madre\") (TSXV: SM) following the receipt of approval from the Comisión Federal de Competencia Económica (COFECE) and the TSX Venture Exchange as well as the completion of other customary closing conditions. In consideration of the sale, First Majestic received 69,063,076 shares of Sierra Madre at a deemed price of CDN$0.65 per share for an approximate value of CDN$44.9 million or US$35.0 million.The following disclosure is being provided under the early warning provisions of Canadian securities legislation.Following the closing of the transaction which occurred yesterday, First Majestic now holds 69,063,076 shares of Sierra Madre or approximately 48.4% of Sierra Madre's issued and outstanding common shares. Prior to completion of the transaction, First Majestic did not hold any securities of Sierra Madre. The common shares were received as consideration for the sale of the La Guitarra Silver Mine. The common shares of Sierra Madre were acquired by First Majestic for general investment purposes. Depending on various factors, including, without limitation, market conditions, general economic and industry conditions and/or any other factors that First Majestic may deem relevant, First Majestic may take such actions with respect to their investment in Sierra Madre as it deems appropriate including, without limitation, acquiring, selling or distributing the common shares to shareholders of First Majestic or otherwise disposing of securities of Sierra Madre from time to time.First Majestic has been granted participation rights to maintain its pro-rata interest in Sierra Madre (to a maximum of 19.9%) in any future equity issuances of Sierra Madre, subject to customary exceptions.The common shares held by First Majestic are subject to the following contractual resale restrictions, in addition to applicable securities laws resale restrictions and TSX Venture Exchange escrow policies. Release Dates Prop...