Sierra Madre Secures $5 Million Loan for La Guitarra Mine Preparations

Sierra Madre Gold and Silver Ltd. announced on May 8, 2024, that it has secured a US$5 million loan from First Majestic Silver Corp. The non-revolving, secured term loan will be used to complete final preparations at the La Guitarra silver and gold mine in the State of Mexico.

The company acquired the La Guitarra mine complex in March 2023 and has since focused on upgrading facilities, equipment, and infrastructure. Proceeds from the loan will fund critical equipment orders, processing plant upgrades, mill repairs, staffing, and underground development to ready the mine for operational restart.

"This non-equity, non-dilutive financing will allow us to complete all necessary steps for the possible restart of the fully permitted La Guitarra Silver and Gold mine," stated Alex Langer, President and CEO of Sierra Madre. He expressed gratitude to First Majestic for their financial support.

The two-year loan carries a 15% annual interest rate and is secured by all shares of the subsidiary owning La Guitarra, along with general security agreements from Sierra Madre and its subsidiaries. Sierra Madre also has exploration and development projects, including the Tepic property in Nayarit.