Sierra Madre to Acquire Del Toro Silver Mine from First Majestic, Plans $50 Million Offering

Sierra Madre Gold and Silver Ltd. has entered into an agreement to acquire the Del Toro Silver Mine in Mexico's Chalchihuites District from First Majestic Silver Corp. The deal, announced December 17, 2025, could be worth up to US$60 million, including deferred and contingent payments.

The acquisition grants Sierra Madre a 100% interest in the 2,129-hectare Del Toro property in Zacatecas State. The site includes three fully permitted underground mines, a processing plant with a 3,000 tonnes-per-day capacity, and several historical mine workings. Sierra Madre President and CEO Alex Langer stated that the restart of mining operations at Del Toro is planned for mid-2027, with production anticipated by mid-2028. The company intends to update a resource report and begin exploration activities.

In conjunction with the acquisition, Sierra Madre is pursuing a concurrent best-efforts private placement of up to $50 million in subscription receipts, arranged by Beacon Securities Limited. Langer highlighted that Del Toro represents Sierra Madre's second major mine acquisition in Mexico, aiming to advance the company toward mid-tier silver production levels.

Greg Liller, Sierra Madre's Executive Chairman and COO, noted that Del Toro aligns well with the company's portfolio, offering significant exploration upside. He explained that Sierra Madre's business model involves acquiring mines with existing infrastructure and then building a resource base.

The Del Toro mine operated from 2013 to 2019. Historical resource estimates indicate significant silver and other metal content. The mine is currently under care and maintenance, with all permits for operational resumption remaining valid. First Majestic Silver Corp. will receive a portion of the transaction consideration in the form of Sierra Madre shares.