Sierra Madre Gold and Silver Ltd. (TSXV: SM) has closed the second and final tranche of its previously announced brokered private placement, raising total gross proceeds of C$57.5M to support the planned acquisition of the Del Toro Silver Mine in Mexico. The second tranche consisted of 13,709,576 subscription receipts priced at C$1.30 each, for gross proceeds of C$17.82M. Combined with the first tranche, the company issued 44,231,300 subscription receipts, with the offering including the full exercise of the agents’ option.
Beacon Securities acted as lead agent and sole bookrunner on behalf of a syndicate that included Canaccord Genuity, BMO Capital Markets, and VSA Capital. The financing forms part of the structure for Sierra Madre’s proposed acquisition of the Del Toro Silver Mine from First Majestic Silver Corp., announced on 17 December 2025. Each subscription receipt will convert automatically into one common share once all escrow release conditions are met, including required corporate, shareholder, and regulatory approvals related to the acquisition.
Proceeds from the second tranche, totalling C$17.57M after deducting 50% of agents’ fees and expenses, have been placed into escrow. Funds will be released to the company upon satisfaction of the escrow conditions before the 14 May 2026 deadline. If the conditions are not met by that date, or if Sierra Madre confirms it does not intend to proceed, the escrowed funds and interest will be returned to investors and the subscription receipts cancelled. Sierra Madre intends to use the net proceeds to complete the Del Toro transaction, advance exploration and development at the project, and for general working capital.
In connection with the closing, the agents received C$452,072 in cash fees, half of which was placed into escrow, along with 346,479 compensation options exercisable at C$1.30 for 24 months. All securities issued under the second tranche are subject to a four‑month hold period and remain subject to final approval from the TSXV.
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