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Sierra Madre Provides Update on Proposed Definitive Acquisition of La Guitarra
VANCOUVER, BC / ACCESSWIRE / December 28, 2022 / Sierra Madre Gold and Silver Ltd. (TSXV:SM) (" ...
About this update from Sierra Madre Gold & Silver Ltd.
[{"type":"text","content":"Sierra Madre Provides Update on Proposed Definitive Acquisition of La GuitarraVANCOUVER, BC / ACCESSWIRE / December 28, 2022 / Sierra Madre Gold and Silver Ltd. (TSXV:SM) (\"Sierra Madre\" or the \"Company\") is pleased to provide an update on its proposed acquisition (the \"Acquisition\") of the La Guitarra Silver-Gold Mine (\"La Guitarra\"). On May 25, 2022, Sierra Madre entered an arm´s length definitive agreement with First Majestic Silver Corp. (\"First Majestic\") to acquire a 100% interest in the 39,714-hectare La Guitarra Silver-Gold property in the Temascaltepec mining district, Mexico. Details of the Acquisition can be found here.Earlier this month, shareholders voted in favour of a resolution to approve the proposed acquisition of all the issued and outstanding shares of La Guitarra Compañia Minera S.A. de C.V from Corporacion First Majestic, S.A. de C.V. (\"CFM\") in exchange for 69,063,076 common shares of the Company (the \"Consideration Shares\") at a deemed price of $0.65 per Consideration Share, having an aggregate value of $44,890,999 (US$35 million) (the \"Transaction\"). The ordinary resolution with respect to the Transaction was approved by 99.99% of the votes cast by shareholders. The Transaction has been Conditionally accepted by the TSX Venture Exchange (the \"Exchange\"). Given the significance of this Acquisition, Sierra Madre has been recently advised to receive Mexican antitrust approval prior to the resumption of trading. Sierra Madre currently anticipates receiving this antitrust approval during Q1 of 2023.Alexander Langer, CEO, states, \"We are incredibly excited to close the acquisition of La Guitarra with the support of our shareholders, First Majestic, and the Mexican authorities. The acquisition of La Guitarra will provide near-term production and cash flow from the restart of the fully permitted mine and the 500 tonnes-per-day mill while we continue to explore and develop the Tepic and La Tigra properties as part of our multi-pronged strategy.\"Highlights of La Guitarra:La Guitarra is a high-grade, past-producing underground mine with an on-site process facility that operated up until August, 2018Historical Measured and Indicated Mineral Resources of approximately 7.45 million ounces (\"oz\") of silver-equivalent (\"AgEq\") and Historical Inferred Mineral Resources of approximately 1...