Sierra Madre Announces Proposed Private Placement and Share Consolidation
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NEWS RELEASE
SIERRA MADRE ANNOUNCES PROPOSED PRIVATE PLACEMENT
AND SHARE CONSOLIDATION
June 18, 2020
Sierra Madre Developments Inc . (the “ Company”) (TSXV: SMG.H) announces that it proposes a share
consolidation and a non-brokered private placement financing.
Share Consolidation
The directors have approved the consolidation of the Company’s 10,798,083 issued and outstanding
common shares on the basis of one new share for every two outstanding shares. As a result of the share
consolidation, the Company will have approximately 5,399,041 common shares outstanding. The share
consolidation is subject to acceptance of the TSX Venture Exchange.
Private Placement
The directors have also approved a private placement to raise up to $1,000,000 through the distribution of
post-consolidated units (each a “Unit”) at $0.06 per Unit. Each Unit will consist of one post-consolidated
common share of the Company and one share purchase warrant exercisable at a price of $ 0.08 per post-
consolidated share for a period of 12 months from the date of issue.
Funds will be used for payment of certain debts, and for working capital purposes. The Company may
pay finder fees in connection with closing of the Private Placement.
ON BEHALF OF THE BOARD:
“Raymond Wladichuk”
Raymond Wladichuk, CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWARD -LOOKING INFORMATION : This news release
includes certain “forward -looking statements” under applicable Canadian securities legislation. Forward -looking
statements include, but are not limited to, statements with respect to: the proposed Property acquisition, the
consolidation of the Company’s shares, and the proposed private placement . There is no assurance the Company
will be able to raise funds on the terms stated, or at all. Forward-looking statements are necessarily based upon a
number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks,
uncertainties, and other factors which may cause the actual results and future events to differ materially from those
expressed or implied by such forward -looking statements. Such factor s include, but are not limited to uncertainties
surrounding the mineral exploration industry and the COVID -19 pandemic. Accordingly, readers should not place
undue reliance on forward -looking statements. The Company disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as
required by law.