Sierra Madre to Acquire Del Toro Silver Mine, Raise $50 Million
Sierra Madre Gold and Silver Ltd. announced on December 17, 2025, an agreement to acquire the Del Toro Silver Mine in Mexico from First Majestic for up to $60 million. The company also plans to raise $50 million through a subscription receipt offering.
Sierra Madre Gold and Silver Ltd. (TSXV: SM) has entered into an agreement to acquire the Del Toro Silver Mine in Zacatecas, Mexico, from First Majestic Silver Corp. for a total consideration of up to US$60 million. This includes a combination of cash, contingent payments, and potential future share issuances.
Concurrently, Sierra Madre has initiated a C$50 million private placement of subscription receipts, managed by Beacon Securities Limited. The company anticipates restarting operations at Del Toro around mid-2028, following the completion of expansion efforts at its La Guitarra mine.
The Del Toro mine is a fully permitted, past-producing underground silver, gold, lead, and zinc operation. It historically holds significant mineral resources that warrant further exploration. The site features a processing plant with a capacity of 3,000 tonnes per day and extensive underground development.
Sierra Madre CEO Alex Langer stated the company aims to reach mid-tier silver production levels. "The acquisition of Del Toro provides us with the opportunity to replicate the successful restart of the La Guitarra mine," Langer said. The company plans to advance exploration and update a resource estimate before commencing production.
Sierra Madre has a strategy of acquiring mines with existing infrastructure. Del Toro's location within the historic Chalchihuites mining district offers potential for discovering new deposits. First Majestic Silver Corp. will retain a strategic stake in Sierra Madre, receiving US$10 million worth of the company's shares upon closing.