Sierra Madre to Acquire La Guitarra Silver-Gold Mine in Mexico
Sierra Madre Gold and Silver Ltd. has agreed to acquire the La Guitarra silver-gold mine in Mexico from First Majestic Silver Corp. The transaction includes a past-producing on-site facility and associated infrastructure.
Vancouver, BC – Sierra Madre Gold and Silver Ltd. announced in May 2022 that it has entered into a definitive agreement to acquire the La Guitarra silver-gold property located in the Temascaltepec mining district of Mexico. The transaction will result in Sierra Madre acquiring a 100% interest in the 39,714-hectare property from First Majestic Silver Corp.
The La Guitarra property features a past-producing underground mine with an on-site processing facility that operated until August 2018. Historical mineral resources have been reported, including approximately 7.45 million ounces of silver equivalent in measured and indicated categories, and approximately 10.02 million ounces in inferred categories. The site also includes a functional and expandable 500-tonne-per-day crushing, grinding, and flotation facility.
Sierra Madre will acquire all outstanding shares of La Guitarra Compania Minera S.A. de C.V., a subsidiary of First Majestic. The acquisition will be settled through the issuance of 69,063,076 Sierra Madre common shares, valued at an aggregate of US$35 million. Upon closing, First Majestic Silver Corp. will become Sierra Madre's largest shareholder.
Alex Langer, President and CEO of Sierra Madre, stated the acquisition is transformative for the company, noting that members of the management team have prior experience operating the La Guitarra mine. The company intends to provide further details on its planned work program in the coming months. La Guitarra is one of Sierra Madre's three precious metal projects in Mexico.