Sierra Madre Gold and Silver Ltd. (TSXV: SM) has announced the successful closing of the second and final tranche of its previously announced brokered private placement, bringing in total gross proceeds of approximately $19.5M. The offering, led by Beacon Securities and supported by Canaccord Genuity, involved the issuance of 27,858,000 units priced at C$0.70 each.
Each unit consists of one common share and one-half of a common share purchase warrant. Each whole warrant entitles the holder to acquire an additional share at a price of C$0.85 for a period of 12 months from the first tranche closing.
The proceeds will be used to support the expansion of the Guitarra silver-gold project in Mexico, including increasing mine capacity and launching a detailed exploration program focused on the East District. Additional funds will be allocated toward general working capital and corporate purposes.
In connection with the final tranche, the company paid a cash commission of C$61,250 and issued 87,500 compensation options to the agents, exercisable at C$0.70 for a 12-month period.
This financing further strengthens Sierra Madre’s ability to move ahead with its phased restart of the fully permitted Guitarra underground mine, which resumed commercial production in January 2025. The company is also advancing exploration at its Tepic property in Nayarit, Mexico, which hosts low-sulphidation epithermal gold and silver mineralization.
Sierra Madre’s management team has a strong track record in resource development and capital markets, having collectively raised over C$1B for mining ventures.
For more information, visit: www.sierramadregoldandsilver.com
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