Business
Sierra Madre Announces Agreement to Acquire the Del Toro Silver Mine from First Majestic Silver and Concurrent $50 Million Offering of Subscription Receipts
Addition of second production-ready asset to the Sierra Madre portfolioDel Toro mine restart to follow La Guitarra ExpansionsVancouver, British Columbia...
About this update from Sierra Madre Gold & Silver Ltd.
[{"type":"text","content":"Addition of second production-ready asset to the Sierra Madre portfolio","length":71,"tagName":"p","attribs":{}},{"type":"text","content":"Del Toro mine restart to follow La Guitarra Expansions","length":54,"tagName":"p","attribs":{}},{"type":"text","content":"Vancouver, British Columbia--(Newsfile Corp. - December 17, 2025) - Sierra Madre Gold and Silver Ltd. (TSXV: SM) (OTCQX: SMDRF) ("Sierra Madre" or the "Company") is pleased to announce that it has entered into a definitive agreement (the "Purchase Agreement") on December 17, 2025 to acquire the Del Toro Silver Mine in the Chalchihuites District in Mexico ("Del Toro") from First Majestic Silver Corp. ("First Majestic") for total consideration of up to US$60 million, inclusive of delayed and contingent milestone payments (the "Transaction"). In connection with the Transaction, Sierra Madre has also entered into an engagement letter with Beacon Securities Limited ("Beacon") with respect to a best-efforts private placement offering of up to $50 million of subscription receipts (the "Offering").","length":881,"tagName":"p"},{"type":"text","content":"Pursuant to the Transaction, Sierra Madre will acquire a 100% interest in the 2,129-hectare ("ha") Del Toro Property in Zacatecas State that includes three, fully permitted underground mines, a 3,000 tonnes per day ("tpd") flotation processing circuit and numerous historic mines.","length":300,"tagName":"p"},{"type":"text","content":"Alex Langer, Sierra Madre's President and Chief Executive Officer, commented, "We are incredibly excited to be announcing our second mine acquisition in Mexico, which provides us with the opportunity to replicate the successful restart the Sierra Madre team has achieved at La Guitarra and advance the Company towards mid-tier silver production levels. Near-term, our plan for Del Toro is to advance exploration and prepare an updated resource report while our operating team focuses on completing the two-stage expansion at La Guitarra. Our initial plan is to commence the mine restart process at Del Toro in mid-2027, with production currently slated for mid-2028. If silver prices continue on their current upward trajectory, there is a possibility of restarting Del Toro within a 12-month time period.&q...