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Sierra Madre Announces Closing of First Tranche of $19.5 Million Best Efforts Private Placement of Units
Vancouver, British Columbia--(Newsfile Corp. - July 24, 2025) - Sierra Madre Gold and Silver Ltd....
About this update from Sierra Madre Gold & Silver Ltd.
[{"type":"text","content":"Sierra Madre Announces Closing of First Tranche of $19.5 Million Best Efforts Private Placement of UnitsVancouver, British Columbia--(Newsfile Corp. - July 24, 2025) - Sierra Madre Gold and Silver Ltd. (TSXV: SM) (\"Sierra Madre\" or the \"Company\") is pleased to announce it has closed the first tranche (the \"First Tranche\") of its previously announced brokered private placement offering of up to 27,858,000 units of the Company (each a \"Unit\") at a price of $0.70 per Unit (the \"Issue Price\") for aggregate gross proceeds to the Company of up to $19,500,600 (the \"Offering\"). The First Tranche consisted of 25,358,000 Units for gross proceeds of $17,750,600. Beacon Securities Limited (\"Beacon\") is acting as lead agent and sole bookrunner, on behalf of a syndicate of agents including Canaccord Genuity Corp. (together with Beacon, the \"Agents\") in connection with the Offering.Each Unit issued pursuant to Part 5A of National Instrument 45-106 - Prospectus Exemptions (\"NI 45-106\"), as amended and supplemented by Coordinated Blanket Order 45-935 - Exemptions from Certain Conditions of the Listed Issuer Financing Exemption (the \"Listed Issuer Financing Exemption\") consists of one common share in the capital of the Company (a \"Unit Share\"), and one half of one common share purchase warrant (each whole warrant a \"Warrant\") of the Company. Each Warrant entitles the holder thereof to acquire one common share (a \"Warrant Share\") at a price per Warrant Share of $0.85 for a period of 12 months from the date of issuance.The Company intends to use the net proceeds of the Offering to expand the capacity of the Guitarra mine, conduct a detailed exploration program, including drilling, at the East District, and for working capital and general corporate purposes.Certain directors and officers of the Company (\"Interested Parties\") subscribed for a total of 686,000 Units in the First Tranche, for aggregate gross proceeds of $480,200. The placement to the Interested Parties constitutes a \"related party transaction\" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Securityholders in Special Transactions (\"MI 61-101\"). The Company has relied on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in Sections 5.5(a) and 5.7(1)(a), respectively...