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First Majestic Silver (TSX:AG,NYSE:AG) has agreed to promote its Del Toro Silver Mine in Mexico to Sierra Madre Gold and Silver (TSXV:SM,OTC:SMDRF) in a transaction valued at as much as US$60 million.
The Vancouver-based miner mentioned it entered right into a definitive settlement on December 17 to divest the 100%-owned, past-producing Del Toro mine, positioned within the halchihuites, Zacatecas area of Mexico.
Below the phrases of the settlement, First Majestic will obtain US$30 million at closing, consisting of US$20 million in money and US$10 million in Sierra Madre frequent shares.
The shares might be issued at a worth of C$1.30 every, matching the worth of Sierra Madre’s concurrent subscription receipt financing tied to the transaction.
An extra US$30 million could also be paid over time if sure improvement and manufacturing benchmarks are met. Inside 18 months of closing, Sierra Madre is required to pay US$10 million in both money or shares, at its election, based mostly on the prevailing market worth on the time of issuance and topic to a cap on the variety of shares issued.
Additional funds of US$10 million every are tied to the delineation of a minimum of 100 million silver-equivalent ounces in mineral sources inside 48 months, together with the achievement of sustained business manufacturing of a minimum of 4,000 tonnes per day inside 60 months of closing.
All shares issued to First Majestic might be topic to statutory maintain intervals and extra resale restrictions underneath the settlement.
The transaction is conditional on Sierra Madre finishing a concurrent non-public placement financing of a minimum of USD$29 million in gross proceeds.
The corporate has introduced plans to boost as much as C$50 million by way of the issuance of subscription receipts, with the financing anticipated to shut in January 2026.
Completion of the sale can also be topic to customary regulatory and shareholder approvals. Sierra Madre expects to hunt shareholder approval for the acquisition by the tip of April 2026.
Del Toro is a former silver, gold, and lead producer that was positioned on care and upkeep by First Majestic in January 2020.
The sale follows a previous transaction between the 2 firms, after Sierra Madre acquired the La Guitarra Silver Mine from First Majestic in 2022 and introduced it again into business manufacturing in January 2025.
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Securities Disclosure: I, Giann Liguid, maintain no direct funding curiosity in any firm talked about on this article.
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