Sierra Madre Gold and Silver Extends First Majestic Loan Maturity
Sierra Madre Gold and Silver Ltd. announced an amendment extending the maturity date of its US$5 million secured term loan with First Majestic Silver Corp. by one year to May 7, 2027.
Vancouver, British Columbia – Sierra Madre Gold and Silver Ltd. (TSXV: SM) has amended the maturity date for its US$5 million secured term loan with First Majestic Silver Corp., extending it by 12 months to May 7, 2027. No other terms of the loan were altered.
The loan carries an annual interest rate of 15 percent, with interest-only payments due monthly. Per the original agreement, Sierra Madre deferred the first six months of interest, totaling US$365,000, which is payable upon the loan's maturity. The company may repay the loan and accrued interest at any time without penalty.
President and CEO Alex Langer stated the extension provides Sierra Madre flexibility to potentially increase plant and mill capacity at its Guitarra silver-gold mine in Mexico and to expedite a district-wide exploration program. "We are very pleased about the extension of this Loan and are grateful for First Majestic’s ongoing support," Langer said.
Sierra Madre also announced the grant of stock options for 950,000 common shares at $0.69 per share to new employees and consultants. These options vest over 12 months and are subject to TSX Venture Exchange acceptance.
The company's focus is on the Guitarra mine in Mexico, which has a 500 tonne-per-day processing facility that restarted commercial production in January 2025.