Sierra Madre to Acquire the La Guitarra Silver-Gold Mine in Mexico from First Majestic Silver Corp

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[{"type":"text","content":"Sierra Madre to Acquire the La Guitarra Silver-Gold Mine in Mexico from First Majestic Silver CorpVANCOUVER, BC / ACCESSWIRE / May 25, 2022 / Sierra Madre Gold and Silver Ltd. (TSXV:SM)(OTCQB:SMDRF) (\"Sierra Madre\" or the \"Company\") is pleased to announce that it has signed an arm's length definitive agreement dated May 25, 2022 (the \"Definitive Agreement\") with First Majestic Silver Corp. (\"First Majestic\") to acquire a 100% interest in the 39,714-hectare La Guitarra Silver-Gold Property (\"La Guitarra\") in the Temascaltepec mining district, Mexico (the \"Transaction\").Highlights:La Guitarra is a high-grade, past-producing underground mine with an on-site process facility that operated up to 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 10.02 million oz AgEq, based on 128,671 metres of drilling[1]Functional and expandable 500 tonnes per day crushing grinding and flotation facilityFully permitted for underground miningCurrently on care and maintenance, available for prompt restartExploration potential over 15 kilometres of known structures that are untestedPositive community relations with local stakeholdersFirst Majestic to become Strategic and Largest Shareholder of Sierra Madre[1] See below under the heading \"Notes for Historical Mineral Resources\".La Guitarra is in the southeast end of the Mexican Silver Belt with an underground mine operating up until August 2018 at the site. Past production was in the order of 1 million to 1.5 million AgEq ounces annually between 2015 and 2018. Current infrastructure includes two underground centres (La Guitarra and Coloso), the 500 tonnes per day (\"t/d\") flotation mill, permitted tailings facility, multiple work buildings, equipment, and related infrastructure.Sierra Madre will acquire all of the issued and outstanding shares of La Guitarra Compania Minera S.A. de C.V. (\"Subco\"), a wholly-owned subsidiary of First Majestic incorporated under the laws of Mexico that holds a 100% interest in La Guitarra. In exchange, Sierra Madre will issue to First Majestic 69,063,076 Sierra Madre common shares (\"Consideration Shares\") at a deemed price of $0.65, having an aggregate value of US$35 million.Alex Langer, Sierra Madre's Pre...

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