Sierra Madre Gold and Silver Ltd. (TSXV: SM) has closed the first tranche of its brokered private placement, raising C$39.68M through the issuance of 30,521,724 subscription receipts priced at C$1.30 each.
The financing forms part of the company’s proposed acquisition of the Del Toro Silver Mine in Mexico from First Majestic Silver Corp. As outlined in the agency agreement, the offering was led by Beacon Securities as sole bookrunner, alongside Canaccord Genuity, BMO Capital Markets, and VSA Capital.
Proceeds from the first tranche—totalling C$38.57M after deductions for a portion of agents’ fees and expenses—have been placed into escrow. The funds will be released once all required corporate, shareholder, and regulatory approvals for the Del Toro transaction are satisfied. Each subscription receipt will automatically convert into one common share upon the satisfaction of these escrow release conditions before 14 May 2026.
If the conditions are not met by the deadline, the escrowed funds, including accrued interest, will be returned to investors and the subscription receipts cancelled.
Sierra Madre intends to complete a second tranche, including the full exercise of the agents’ option. Net proceeds will be used to complete the Del Toro acquisition, advance exploration and development at the mine, and support general working capital.
In connection with the closing of the first tranche, the company paid C$2.03M in cash commissions and corporate finance fees and issued 1,562,366 compensation options to the agents, exercisable at the issue price for 24 months.
Certain directors and officers participated in the financing, subscribing for 219,250 subscription receipts. The related party participation falls under MI 61‑101 exemptions, as the transaction represents less than 25% of Sierra Madre’s market capitalisation.
The securities issued under the offering are subject to a four‑month hold period and remain subject to final TSX Venture Exchange approval.
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