Sierra Madre Announces Extension to First Majestic Loan
Sierra Madre Announces Extension to First
Majestic Loan
Vancouver, British Columbia--(Newsfile Corp. - June 5, 2025) - Sierra Madre Gold and Silver Ltd.
(TSXV: SM) (OTCQX: SMDRF) ("
Sierra Madre
" or the "
Company
") is pleased to announce an
amendment to the non-revolving, secured term loan ("
Loan
") in the amount of US$5 million between the
Company and First Majestic Silver Corp. ("
First Majestic
"); please see Sierra Madre press release
dated
May
8,
2024
for details of the original loan announcement.
The Loan now has a maturity date of May 7, 2027, which represents a 12-month extension of the original
term, with no other changes. The Loan bears interest at a rate of 15% per annum with payments of
interest only due monthly. In accordance with the original agreement, the Company has deferred
payment of the first six months' interest in the amount of US$365,000, which is payable upon maturity of
the Loan.
The Company may repay the Loan and accrued interest at any time, without penalty.
Alex Langer, Sierra Madre's President and CEO, states: "We are very pleased about the extension of
this Loan and are grateful for First Majestic's ongoing support. This amendment is expected to provide
the flexibility for Sierra Madre to potentially increase plant and mill capacity at our Guitarra silver-gold
mine in Mexico's silver belt and also allow us expedite a district-wide exploration program."
Sierra Madre also announces that, pursuant to its Stock Option Plan, it has granted stock options to new
employees of La Guitarra Compania Minera, S.A. de C.V. and consultants of the Company, to purchase
an aggregate of 950,000 common shares of the Company at the price of $0.69 per share for a period of
five years from the grant date. The options will vest 1/3 immediately as of the date of grant; 1/3 6 months
after the date of the grant; and 1/3 12 months after the date of the grant. This stock option grant is subject
to acceptance by the TSX Venture Exchange.
About Sierra Madre
Sierra Madre Gold and Silver Ltd.
(TSXV: SM) (OTCQX: SMDRF) is a precious metals development
and exploration company focused on the Guitarra mine in the Temascaltepec mining district, Mexico,
and the exploration and development of its Tepic property in Nayarit, Mexico. The Guitarra mine is a
permitted underground mine, which includes a 500 t/d processing facility that operated until mid-2018
and restarted commercial production in January 2025.
The +2,600 ha Tepic Project hosts low-sulphidation epithermal gold and silver mineralization with an
existing historic resource.
Sierra Madre's management team has played key roles in managing the exploration and development of
silver and gold mineral reserves and mineral resources. Sierra Madre's team of professionals has
collectively raised over $1 billion for mining companies.
On behalf of the board of directors of Sierra Madre Gold and Silver Ltd.,
"
Alexander Langer
"
Alexander Langer
President, Chief Executive Officer and Director
778-820-1189
Contact:
Cautionary Note Regarding Forward-Looking Information
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
news release.
This press release contains "forward-looking information" and "forward-looking statements" within the
meaning of applicable securities legislation. The forward-looking statements herein are made as of
the date of this press release only, and the Company does not assume any obligation to update or
revise them to reflect new information, estimates or opinions, future events or results or otherwise,
except as required by applicable law. Often, but not always, forward-looking statements can be
identified by the use of words such as "plans", "expects", "is expected", "budgets", "scheduled",
"estimates", "forecasts", "predicts", "projects", "intends", "targets", "aims", "anticipates" or "believes"
or variations (including negative variations) of such words and phrases or may be identified by
statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be
taken, occur or be achieved. Forward-looking statements include, without limitation, statements
regarding discussions of future plans, including the expected timing of concentrate shipments; the
Company increasing production; the Company receiving revenues on a weekly basis and such
revenues allowing the Company to comfortably expand to without further capital needs; production
and the expected timing and production levels thereof.
The forward-looking statements involve numerous risks and uncertainties, and actual results might
differ materially from results suggested in any forward-looking statements. These risks and
uncertainties include, among other things, that predicted production levels will be achieved and that
existing production levels will be maintained.
In making the forward-looking statements in this news release, the Company has applied certain
material assumptions, including without limitation, that the Company will be able to execute its future
plans as intended, that predicted production levels will be achieved and that existing production levels
will be maintained.
Although management of the Company has attempted identify important factors that could cause
actual results to differ materially from those contained in forward-looking statements or forward-looking
information, there may be other factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking statements and forward-looking
information. Readers are cautioned that reliance on such information may not be appropriate for other
purposes.
SOURCE:
Sierra Madre Gold and Silver Ltd.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/254551