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Sierra Madre Announces Closing of First Tranche of $10 Million Best Efforts Private Placement
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED S...
About this update from Sierra Madre Gold & Silver Ltd.
[{"type":"text","content":"Sierra Madre Announces Closing of First Tranche of $10 Million Best Efforts Private PlacementNOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESVANCOUVER, BC / ACCESSWIRE / September 8, 2022 / Sierra Madre Gold and Silver Ltd. (TSXV:SM) (OTCQB:SMDRF) (\"Sierra Madre\" or the \"Company\") is pleased to announce that it has closed the first tranche (the \"First Tranche\") of its previously announced \"best efforts\" brokered private placement financing (the \"Offering\") pursuant to an agency agreement dated September 8, 2022 (the \"Agency Agreement\") with Beacon Securities Limited and Canaccord Genuity Corp. (together, the \"Co-Lead Agents\") on behalf of a syndicate of agents including Haywood Securities Inc. (together with the Co-Lead Agents, the \"Agents\").Pursuant to the Agency Agreement, the Offering is comprised of up to (i) 9,385,000 subscription receipts of the Company (the \"Subscription Receipts\") at a price of $0.65 per Subscription Receipt (the \"Subscription Receipt Offering\"), and (ii) 6,000,000 common shares of the Company (the \"Common Shares\") at a price per $0.65 per Common Share (the \"Common Share Offering\"), for aggregate gross proceeds of up to $10,000,250. The Company also granted the Agents an option to sell up to an additional 2,307,750 Subscription Receipts at a price of $0.65 per Subscription Receipt for additional gross proceeds of up to $1,500,038, exercisable in whole or in part at any time up to 48 hours prior to the applicable closing date of any tranche of the Subscription Receipt Offering.As previously indicated, the Offering is being conducted in conjunction with the Company's proposed acquisition (the \"Proposed Acquisition\") of all of the issued and outstanding shares of La Guitarra Compania Minera S.A. de C.V., an indirect wholly-owned subsidiary of First Majestic Silver Corp. incorporated under the laws of Mexico, that holds a 100% interest in the La Guitarra silver-gold property (the \"La Guitarra Property\") (see the Company's news release dated May 25, 2022).Under the First Tranche, the Company issued 9,504,647 Subscription Receipts at a price of $0.65 per Subscription Receipt for aggregate gross proceeds of $6,178,020.55. Each Subscription Receipt shall, upon satisfaction of the Escrow Release Conditions (as defined below) and without ...