Sierra Madre Announces Closing of First Tranche of $19.5 Million Best Efforts Private Placement of Units
Sierra Madre Gold and Silver (TSXV: SM) has successfully closed the first tranche of its brokered private placement, raising $17.75 million through the issuance of 25,358,000 units at $0.70 per unit. Each unit includes one common share and half a warrant, with each full warrant exercisable at $0.85 for 12 months.
The company plans to use the proceeds to expand the Guitarra mine capacity, conduct exploration at the East District, and for working capital. Beacon Securities acted as lead agent, with company insiders participating by subscribing for 686,000 units ($480,200). The agents received a cash fee of $1.17 million plus compensation options.
The total offering size is up to $19.5 million, with this first tranche representing approximately 91% of the total placement.Sierra Madre Gold and Silver (TSXV: SM) ha completato con successo la prima tranche della sua collocazione privata con l'intermediazione di broker, raccogliendo 17,75 milioni di dollari tramite l'emissione di 25.358.000 unità a 0,70 dollari ciascuna. Ogni unità comprende una azione ordinaria e mezza warrant, con ogni warrant intero esercitabile a 0,85 dollari per 12 mesi.
L'azienda intende utilizzare i fondi per ampliare la capacità della miniera Guitarra, condurre esplorazioni nell'Area Est e per capitale circolante. Beacon Securities ha agito come agente principale, con la partecipazione di dirigenti aziendali che hanno sottoscritto 686.000 unità (480.200 dollari). Gli agenti hanno ricevuto una commissione in contanti di 1,17 milioni di dollari oltre a opzioni di compensazione.
La dimensione totale dell'offerta può arrivare fino a 19,5 milioni di dollari, con questa prima tranche che rappresenta circa il 91% del totale della collocazione.
Sierra Madre Gold and Silver (TSXV: SM) ha cerrado con éxito la primera tranche de su colocación privada con intermediarios, recaudando 17,75 millones de dólares mediante la emisión de 25.358.000 unidades a 0,70 dólares por unidad. Cada unidad incluye una acción común y media warrant, siendo cada warrant completo ejercitable a 0,85 dólares durante 12 meses.
La compañía planea usar los fondos para ampliar la capacidad de la mina Guitarra, realizar exploraciones en el Distrito Este y para capital de trabajo. Beacon Securities actuó como agente principal, con la participación de directivos que suscribieron 686.000 unidades (480.200 dólares). Los agentes recibieron una comisión en efectivo de 1,17 millones de dólares además de opciones de compensación.
El tamaño total de la oferta es de hasta 19,5 millones de dólares, siendo esta primera tranche aproximadamente el 91% del total de la colocación.
Sierra Madre Gold and Silver (TSXV: SM)는 중개인 사모 발행의 첫 번째 분할을 성공적으로 마무리하여, 단위당 0.70달러에 25,358,000 단위를 발행해 1,775만 달러를 조달했습니다. 각 단위는 보통주 한 주와 워런트 반 개로 구성되며, 워런트 한 개는 0.85달러에 12개월 동안 행사 가능합니다.
회사는 조달 자금을 Guitarra 광산 용량 확장, 동부 지구 탐사 및 운전자본으로 사용할 계획입니다. Beacon Securities가 주간사를 맡았으며, 회사 내부 임원들이 686,000 단위(480,200 달러)를 청약했습니다. 대리인들은 현금 수수료 117만 달러와 보상 옵션을 받았습니다.
총 공모 규모는 최대 1,950만 달러이며, 이번 첫 번째 분할은 총 발행의 약 91%에 해당합니다.
Sierra Madre Gold and Silver (TSXV : SM) a clôturé avec succès la première tranche de son placement privé avec intermédiaire, levant 17,75 millions de dollars par l'émission de 25 358 000 unités à 0,70 dollar chacune. Chaque unité comprend une action ordinaire et un demi-bon de souscription, chaque bon complet pouvant être exercé à 0,85 dollar pendant 12 mois.
La société prévoit d'utiliser les fonds pour augmenter la capacité de la mine Guitarra, mener des explorations dans le district Est et pour le fonds de roulement. Beacon Securities a agi en tant qu'agent principal, avec la participation d'initiés de la société qui ont souscrit 686 000 unités (480 200 dollars). Les agents ont reçu des frais en espèces de 1,17 million de dollars en plus d'options de compensation.
La taille totale de l'offre est de 19,5 millions de dollars au maximum, cette première tranche représentant environ 91 % du placement total.
Sierra Madre Gold and Silver (TSXV: SM) hat die erste Tranche seiner von Brokern begleiteten Privatplatzierung erfolgreich abgeschlossen und dabei 17,75 Millionen US-Dollar durch die Ausgabe von 25.358.000 Einheiten zu je 0,70 US-Dollar pro Einheit eingenommen. Jede Einheit umfasst eine Stammaktie und eine halbe Warrant, wobei jeder volle Warrant für 12 Monate zum Preis von 0,85 US-Dollar ausgeübt werden kann.
Das Unternehmen plant, die Erlöse zur Erweiterung der Kapazität der Guitarra-Mine, zur Exploration im Ostbezirk und für das Betriebskapital zu verwenden. Beacon Securities fungierte als Hauptagent, wobei Insider des Unternehmens 686.000 Einheiten (480.200 US-Dollar) zeichneten. Die Agenten erhielten eine Barprovision von 1,17 Millionen US-Dollar sowie Optionsvergütungen.
Die Gesamtgröße des Angebots beträgt bis zu 19,5 Millionen US-Dollar, wobei diese erste Tranche etwa 91 % der gesamten Platzierung ausmacht.
- Successful closing of first tranche raising $17.75M, representing 91% of total planned $19.5M offering
- Strategic use of proceeds for mine expansion and exploration program
- Insider participation demonstrates management confidence with $480,200 investment
- Warrant exercise price of $0.85 represents 21.4% premium to unit price
- Significant dilution with 25.36M new units being issued
- Substantial fees paid to agents totaling $1.17M plus compensation options
- Short warrant term of only 12 months may create selling pressure
Vancouver, 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
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
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
In connection with the closing of the First Tranche, the Company paid the Agents a cash fee of
Subject to compliance with applicable regulatory requirements and in accordance with NI 45-106, the Units were offered for sale (i) to purchasers resident in Canada, other than Quebec, pursuant to the Listed Issuer Financing Exemption, (ii) in the United States pursuant to available exemptions from the registration requirements of the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and applicable U.S. state securities laws, and (iii) in such other jurisdictions outside of Canada and the United States, provided that no prospectus, registration statement or similar document is required to be filed in such foreign jurisdiction. The securities issued under the Listed Issuer Financing Exemption to Canadian subscribers are not subject to a hold period in Canada. The Offering remains subject to final acceptance by the TSX Venture Exchange.
The amended and restated offering document dated July 21, 2025 related to the Offering and the use by the Company of the Listed Issuer Financing Exemption can be accessed under the Company's profile at www.sedarplus.ca and on the Company's website at www.sierramadregoldandsilver.com. Prospective investors should read this offering document before making an investment decision.
The securities have not been registered under the U.S. Securities Act, or any U.S. state securities laws, and were not offered or sold in the "United States" (as such term is defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable U.S. state securities laws or an exemption from such registration is available. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Sierra Madre
Sierra Madre Gold and Silver Ltd. is a precious metals development and exploration company focused on the Guitarra mine in the Temascaltepec mining district, Mexico, and the exploration and development of its Tepic property in Nayarit, Mexico. The Guitarra mine is a permitted underground mine, which includes a 500 t/d processing facility that operated until mid-2018 and restarted commercial production in January 2025.
The +2,600 ha Tepic Project hosts low-sulphidation epithermal gold and silver mineralization with an existing historic resource.
Sierra Madre's management team has played key roles in managing the exploration and development of silver and gold mineral reserves and mineral resources. Sierra Madre's team of professionals has collectively raised over
On behalf of the board of directors of Sierra Madre Gold and Silver Ltd.,
"Alexander Langer"
Alexander Langer
President, Chief Executive Officer and Director
Contact: investor@sierramadregoldandsilver.com
Cautionary Note Regarding Forward-Looking Information
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation and statements that are based on the beliefs of management and reflect the Company's current expectations. When used in this press release, the words "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. Such statements and information reflect the current view of the Company. Forward-looking statements and forward-looking information in this press release include, but are not limited to, statements with respect to the timing and completion of the Offering, the use of proceeds of the Offering and the receipt of regulatory approvals for the Offering. Risks and uncertainties may cause actual results to differ materially from those contemplated in those forward-looking statements and information. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information or forward-looking statements that are contained or referenced herein, except as may be required in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice regarding forward-looking information and statements.
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES ORFOR DISSEMINATION IN THE UNITED STATES
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/259967
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