Sierra Madre Fully Repays First Majestic Loan
Rhea-AI Summary
Sierra Madre Gold and Silver (OTCQX: SMDRF) fully repaid its US$5 million secured term loan from First Majestic, ahead of the May 8, 2027 maturity. The company reports it is now debt free and generating positive operating cash flows from La Guitarra.
Sierra Madre also granted 8,800,000 stock options at $1.38 per share for five years to employees, directors, management, consultants, and its investor relations firm, with staged vesting and subject to TSX Venture Exchange acceptance.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Positive
- Full repayment of US$5 million First Majestic loan before 2027 maturity
- Company reports being debt free with positive operating cash flows
- Reduced financial obligations support advancing La Guitarra and Del Toro projects
- Long-dated 8,800,000 options align employees, management, and consultants with shareholders
Negative
- 8,800,000 new stock options at $1.38 may dilute existing shareholders
- Option grant remains subject to TSX Venture Exchange acceptance
Vancouver, British Columbia--(Newsfile Corp. - July 8, 2026) - Sierra Madre Gold and Silver Ltd. (TSXV: SM) (OTCQX: SMDRF) ("Sierra Madre" or the "Company") is pleased to announce that it has fully repaid the US
Please see the Company's press release dated May 8, 2024, for details of the original Loan announcement, the Company's press release dated June 5, 2025, for details of a term extension setting a new maturity date of May 8, 2027, and the Company's press release dated March 24, 2026 announcing a partial prepayment of the Loan.
Alex Langer, Sierra Madre's President and CEO, states: "We are happy to announce the full repayment of our loan facility with First Majestic, which reflects the strong cash generation from our La Guitarra operation. The Company is currently debt free and producing positive operating cash flows. By reducing our financial obligations, we are on a strong path to advance exploration and development activities at both La Guitarra and Del Toro."
Grant of Stock Options
Pursuant to its Stock Option Plan (the "Plan"), the Company has granted stock options to employees of La Guitarra Compania Minera, S.A. de C.V., certain directors, members of management, and consultants of the Company to purchase an aggregate of 8,800,000 common shares of the Company at a price of
About Sierra Madre
Sierra Madre Gold and Silver Ltd. (TSXV: SM) (OTCQX: SMDRF) is a precious metals producer and exploration company focused on operation, exploration, and development at its Guitarra mine complex in the Temascaltepec mining district, Mexico. The Guitarra mine is a permitted underground mine, which includes a 500 tonne-per-day processing facility that operated until mid-2018 and restarted commercial production in January 2025.
In June 2026, Sierra Madre closed the acquisition of the Del Toro silver mine, adding a past-producing, fully permitted asset to its Mexico-focused silver and gold portfolio.
The Company also holds the +2,600-hectare Tepic Project, which 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
778-820-1189
Cautionary Note Regarding Production Decisions
The Company's decision to place the mine into commercial production, expand a mine, make other production related decisions, or otherwise carry out mining and processing operations, is largely based on internal non-public Company data and reports from previous operations and the results of test mining and processing. The Company is not basing any production decisions on NI 43-101 compliant reserve estimates, preliminary economic assessments or feasibility studies and, as a result, there is greater risk and uncertainty as to future economic results from the Guitarra Mine Complex, including increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit, and a higher technical risk of failure than would be the case if a feasibility study were completed and relied upon to make a production decision.
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" and "forward-looking statements" within the meaning of applicable securities legislation. The forward-looking statements herein are made as of the date of this press release only, and the Company does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budgets", "scheduled", "estimates", "forecasts", "predicts", "projects", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements include, without limitation, statements regarding discussions of future plans, including the expected timing of concentrate shipments; the Company increasing production; the Company receiving revenues on a weekly basis and such revenues allowing the Company to comfortably expand to without further capital needs; production and the expected timing and production levels thereof.
The forward-looking statements involve numerous risks and uncertainties, and actual results might differ materially from results suggested in any forward-looking statements. These risks and uncertainties include, among other things, that predicted production levels will be achieved and that existing production levels will be maintained.
In making the forward-looking statements in this news release, the Company has applied certain material assumptions, including without limitation, that the Company will be able to execute its future plans as intended, that predicted production levels will be achieved and that existing production levels will be maintained.
Although management of the Company has attempted identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/304472