Sierra Madre Provides Update ON Proposed Definitive Acquisition of LA Guitarra
SIERRA MADRE PROVIDES UPDATE ON PROPOSED DEFINITIVE ACQUISITION OF
LA GUITARRA
Vancouver, British Columbia – December 28, 2022 – Sierra Madre Gold and Silver Ltd. (TSXV: SM) ("Sierra
Madre" or the "Company") is pleased to provide an update on its proposed acquisition (the “Acquisition”)
of the La Guitarra Silver-Gold Mine (“La Guitarra”). On May 25, 2022, Sierra Madre entered an arm´s length
definitive agreement with First Majestic Silver Corp. (" First Majestic") to acquire a 100% interest in the
39,714-hectare La Guitarra Silver-Gold property in the Temascaltepec mining district, Mexico. Details of
the Acquisition can be found here.
Earlier this month, shareholders voted in favour of a resolution to approve the proposed acquisition of all
the issued and o utstanding shares of La Guitarra Compañia Minera S.A. de C.V from Corporacion First
Majestic, S.A. de C.V. (“CFM”) in exchange for 69,063,076 common shares of the Company (the
“Consideration Shares”) at a deemed price of $0.65 per Consideration Share, having an aggregate value
of $44,890,999 (US$35 million) (the “ Transaction”). The ordinary resolution with respect to the
Transaction was approved by 99.99% of the votes cast by shareholders. The Transaction has been
Conditionally accepted by the TSX Venture Exchange (the “ Exchange”). Given the significance of this
Acquisition, Sierra Madre has been recently advised to receive Mexican antitrust approval prior to the
resumption of trading. Sierra Madre currently anticipates receiving this antitrust approval during Q1 of
2023.
Alexander Langer, CEO, states, “We are incredibly excited to close the acquisition of La Guitarra with the
support of our shareholders, First Majestic, and the Mexican authorities. The acquisition of La Guitarra
will provide near-term production and cash flow from the restart of the fully permitted mine and the 500
tonnes-per-day mill while we continue to explore and develop the Tepic and La Tigra properties as part of
our multi-pronged strategy.”
Highlights of La Guitarra:
• La Guitarra is a high -grade, past-producing underground mine with an on -site process facility
that operated up until August, 2018
• Historical Measured and Indicated Mineral Resources of approximately 7.45 million ounces
("oz") of silver-equivalent ("AgEq") and Historical Inferred Mineral Resources of approximately
10.02 million oz AgEq, based on 128,671 metres of drilling1
1 These are historical estimates only and are not NI 43 -101 compliant mineral resources. For further information regarding the
historical mineral resource estimates, please refer to the Company’s news release dated May 25, 2022.
• Functional and expandable 500 tonnes-per-day crushing grinding and flotation facility
• Fully permitted for underground mining
• Currently on care and maintenance, available for prompt restart
• Exploration potential over 15 kilometres of known structures that are untested
• Positive community relations with local stakeholders
• First Majestic to become Strategic and Largest Shareholder of Sierra Madre
About Sierra Madre
Sierra Madre Gold and Silver Ltd. is a mineral exploration company, currently focused on the acquisition,
exploration and development of the Tepic and La Tigra Properties in Nayarit, Mexico. The Company has an
experienced management team with a proven track record of wealth creation in Mexico through project
discovery, advancement, and monetization. Sierra Madre’s key objective is to advance exploration on the
Tepic and La Tigra Properties to determine whether t hey contain commercially exploitable deposits of
precious or base metals.
On behalf of the board of directors of Sierra Madre Gold and Silver Ltd.,
“Alexander Langer”
Alexander Langer
President, Chief Executive Officer and Director
Contact:
Cautionary Note
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
information in this press release includes, but is not limited to, statements with respect to the completion
of the Transaction on the terms set out in the definitive agreement (or at all) and the ability of the Company
to obtain requisite corporate and regulatory approvals for the Transaction, including but not limited to the
approval of the Exchange , Mexican antitrust appr oval and other governmental approvals as currently
anticipated.
In making the forward-looking statements included in this news release, the Company has applied several
material assumptions, including that the Company will be able to receive all required regulatory approvals
by the timelines currently anticipated (or at all) ; and that the Company will be able to complete the
Transaction on the terms of the definitive agreement. Forward-looking statements and information are
subject to various known and unknown risks and uncertainties, many of which are beyond the ability of the
Company to control or predict, that may cause the Company’s actual results, performance or achievements
to be materially different from those expressed or implied thereby, and are deve loped based on
assumptions about such risks, uncertainties and other factors set out herein, including, but not limited to,
the risk that the Company is not able to complete Transaction on the terms set out in the definitive
agreement (or at all) and the risk that the Company is unable to obtain requisite corporate and regulatory
approvals, including but not limited to the approval of the TSX Venture Exchange, the Mexican antitrust
approval and governmental approval as currently anticipated.
Such forwa rd-looking information represents management's best judgment based on information
currently available. No forward-looking statement can be guaranteed and actual future results may vary
materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or
information.