Sierra Madre Gold and Silver Shareholders Approve Acquisition

Sierra Madre Gold and Silver Ltd. announced on December 9, 2022, the results of its special shareholder meeting where the majority voted in favor of the proposed acquisition of La Guitarra Compañia Minera S.A. de C.V. from Corporacion First Majestic, S.A. de C.V.

The transaction entails Sierra Madre issuing 69,063,076 common shares, valued at approximately $44.9 million USD, in exchange for all outstanding shares of La Guitarra. The ordinary resolution for the acquisition was approved with 99.99% of the votes cast.

Shareholders also approved a resolution concerning the creation of a new Control Person, First Majestic Silver Corp., resulting from the share issuance. This resolution also received 99.99% approval. The company is proceeding with the acquisition based on a share purchase agreement dating back to May 24, 2022, with amendments.

The completion of the transaction is subject to the final acceptance of the TSX Venture Exchange. Sierra Madre Gold and Silver is currently focused on the acquisition, exploration, and development of the Tepic and La Tigra Properties in Nayarit, Mexico.