Sierra Madre Gold closes $19.5-million financing

Executive Summary

• Sierra Madre Gold and Silver Ltd. closed the second and final tranche of its $19.5 million best‑efforts private placement, raising an additional $1.75 million.
• The offering consisted of 2.5 million units at C$0.70 per unit, each unit containing one common share and half a warrant (exercise price C$0.85, 12‑month term).
• Net proceeds will be used to expand Guitarra mine capacity, fund an east‑district exploration program (including drilling), and support working capital/general corporate purposes.

Key Details

• Total Offering Size: Up to 27,858,000 units; aggregate gross proceeds of $19,500,600 including the first tranche.
• Second Tranche Quantity & Proceeds: 2,500,000 units for gross proceeds of $1,750,000.
• Unit Composition: 1 common share + ½ warrant per unit; warrants exercisable at C$0.85 per share for 12 months from first‑tranche closing.
• Lead Agent & Bookrunner: Beacon Securities Ltd.; syndicate also included Canaccord Genuity Corp.
• Agent Compensation: Cash fee of $61,250 plus issuance of 87,500 compensation options (each option to purchase one common share at the issue price, exercisable within 12 months).
• Use of Proceeds:
• Expand processing capacity at the Guitarra underground mine.
• Conduct detailed exploration program—including drilling—in the east district of the Guitarra property.
• Provide working capital and general corporate purposes.
• Regulatory Offering Framework: Units offered under NI 45‑106 Part 5A exemptions to Canadian (non‑Quebec) investors, U.S. investors via applicable securities law exemptions, and other jurisdictions where no prospectus is required. No hold period for Canadian subscribers.

Notable Quotes

(No executive quotes were provided in the release.)