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 unit脿 a 0,70 dollari ciascuna. Ogni unit脿 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 capacit脿 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 unit脿 (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 pu貌 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 茅xito la primera tranche de su colocaci贸n privada con intermediarios, recaudando 17,75 millones de d贸lares mediante la emisi贸n de 25.358.000 unidades a 0,70 d贸lares por unidad. Cada unidad incluye una acci贸n com煤n y media warrant, siendo cada warrant completo ejercitable a 0,85 d贸lares durante 12 meses.
La compa帽铆a 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 actu贸 como agente principal, con la participaci贸n de directivos que suscribieron 686.000 unidades (480.200 d贸lares). Los agentes recibieron una comisi贸n en efectivo de 1,17 millones de d贸lares adem谩s de opciones de compensaci贸n.
El tama帽o total de la oferta es de hasta 19,5 millones de d贸lares, siendo esta primera tranche aproximadamente el 91% del total de la colocaci贸n.
Sierra Madre Gold and Silver (TSXV: SM)電� 欷戧皽鞚� 靷 氚滍枆鞚� 觳� 氩堨Ц 攵勴暊鞚� 靹标车鞝侅溂搿� 毵堧毽晿鞐�, 雼渼雼� 0.70雼煬鞐� 25,358,000 雼渼毳� 氚滍枆頃� 1,775毵� 雼煬毳� 臁半嫭頄堨姷雼堧嫟. 臧� 雼渼電� 氤错喌欤� 頃� 欤检檧 鞗岆煱韸� 氚� 臧滊 甑劚霅橂┌, 鞗岆煱韸� 頃� 臧滊姅 0.85雼煬鞐� 12臧滌洈 霃欖晥 頄夓偓 臧�電�顷╇媹雼�.
須岇偓電� 臁半嫭 鞛愱笀鞚� Guitarra 甏戩偘 鞖╇焿 頇曥灔, 霃欕秬 歆�甑� 韮愳偓 氚� 鞖挫爠鞛愲掣鞙茧 靷毄頃� 瓿勴殟鞛呺媹雼�. Beacon Securities臧� 欤缄皠靷ゼ 毵§晿鞙茧┌, 須岇偓 雮措秬 鞛勳洂霌れ澊 686,000 雼渼(480,200 雼煬)毳� 觳暯頄堨姷雼堧嫟. 雽�毽澑霌れ潃 順勱笀 靾橃垬耄� 117毵� 雼煬鞕� 氤挫儊 鞓奠厴鞚� 氚涭晿鞀惦媹雼�.
齑� 瓿惦 攴滊電� 斓滊寑 1,950毵� 雼煬鞚措┌, 鞚措矆 觳� 氩堨Ц 攵勴暊鞚� 齑� 氚滍枆鞚� 鞎� 91%鞐� 頃措嫻顷╇媹雼�.
Sierra Madre Gold and Silver (TSXV : SM) a cl么tur茅 avec succ猫s la premi猫re tranche de son placement priv茅 avec interm茅diaire, levant 17,75 millions de dollars par l'茅mission de 25 358 000 unit茅s 脿 0,70 dollar chacune. Chaque unit茅 comprend une action ordinaire et un demi-bon de souscription, chaque bon complet pouvant 锚tre exerc茅 脿 0,85 dollar pendant 12 mois.
La soci茅t茅 pr茅voit d'utiliser les fonds pour augmenter la capacit茅 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'initi茅s de la soci茅t茅 qui ont souscrit 686 000 unit茅s (480 200 dollars). Les agents ont re莽u des frais en esp猫ces 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 premi猫re tranche repr茅sentant 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 f眉r 12 Monate zum Preis von 0,85 US-Dollar ausge眉bt werden kann.
Das Unternehmen plant, die Erl枚se zur Erweiterung der Kapazit盲t der Guitarra-Mine, zur Exploration im Ostbezirk und f眉r 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 Optionsverg眉tungen.
Die Gesamtgr枚脽e des Angebots betr盲gt 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 and on the Company's website at . 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: [email protected]
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
FAQ
How much did Sierra Madre Gold and Silver (TSXV: SM) raise in the first tranche of its private placement?
What is the structure of the units in Sierra Madre's private placement?
How will Sierra Madre use the proceeds from this private placement?
What was the insider participation in Sierra Madre's private placement?
What fees did Sierra Madre pay to the agents for this private placement?
