Sierra Madre Gold & Silver (TSXV: SMDRF) has signed an amended and restated definitive agreement with First Majestic Silver, marking a significant step toward restarting operations at the La Guitarra Mine in Mexico. This new agreement refines and strengthens the original terms announced in 2023, when First Majestic increased its equity position in Sierra Madre to approximately 47.7%. The updated deal clarifies operational responsibilities and aligns the interests of both parties as the project moves toward commercial production.
La Guitarra is a past-producing underground silver-gold mine with a 500tpd processing facility and full permits already in place. Sierra Madre is actively working to recommission the plant and resume mining, targeting initial commercial production in 2025. The project is supported by a substantial historical database, including over 1,400 drill holes and extensive logged core, providing a strong technical foundation for the restart and future exploration.
The company reports a stable working capital position and expects cash flow from ongoing test mining to fund operations for the next 12 months. Earlier in 2024, Sierra Madre secured a debt facility and a concentrate offtake agreement to further support the restart plan. Management stated that the amended agreement reflects a more collaborative structure with First Majestic, combining technical expertise and strategic alignment to deliver long-term value.
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