Sierra Madre Acquires Del Toro Silver Mine from First Majestic

<h2>Sierra Madre Acquires Del Toro Silver Mine from First Majestic</h2>

Sierra Madre Gold and Silver Ltd. announced the completion of its acquisition of Del Toro Silver Mine, previously fully owned by First Majestic Silver Corp. The transaction, valued at up to $60 million, involves cash payments and the issuance of Sierra Madre shares to First Majestic.

The Del Toro mine, located in Mexico, is described by Sierra Madre CEO Alex Langer as a significant step in advancing the company toward mid-tier silver production. The mine possesses existing production infrastructure, and Sierra Madre plans to commence resource expansion drilling and update its mineral resource estimates with the objective of restarting the mine and generating cash flow.

At the initial closing, Sierra Madre paid First Majestic $20 million in cash and issued 10.87 million common shares. An additional $10 million payment is due within 18 months, which can be settled in cash or Sierra Madre shares.

The agreement also outlines two future milestone payments. A $10 million payment will be made if Sierra Madre reports at least 100 million ounces of silver equivalent in mineral resources under NI 43-101 within 48 months. Another $10 million payment is due if the mine achieves a commercial production rate of at least 4,000 tonnes per day for 30 consecutive days within 60 months. Both potential payments can be made in cash or Sierra Madre shares.