Sierra Madre Gold and Silver has announced a significant financial development. First Majestic Silver Corp. ("First Majestic") has provided the Company with a non-revolving, secured term loan of US$5 million. This agreement marks a pivotal step in Sierra Madre’s plans to advance its mining operations.
Since the acquisition of the La Guitarra Silver-Gold Mine Complex in Estado de Mexico, Mexico, in March 2023, Sierra Madre has focused on enhancing the facilities, equipment, and infrastructure at the site. The new loan will facilitate further critical developments, including the procurement of essential mining equipment, processing facility upgrades, mill repairs, full staffing, and the final underground preparations necessary for the operational restart of the mine.
Comments from Leadership
Alex Langer, President and CEO of Sierra Madre, expressed his satisfaction with the financing agreement, stating, "After a thorough and extensive process, we are very pleased to announce this non-equity, non-dilutive financing. The Loan will allow us to complete all necessary steps for the possible restart of the fully permitted La Guitarra Silver and Gold mine. We would like to extend our gratitude to First Majestic for providing this funding and for their continued support of La Guitarra."
Loan Details
The loan has a two-year term and bears interest at a rate of 15% per annum, compounded monthly. Interest payments will commence six months after the loan's initiation and will be due on the last day of each subsequent month. Sierra Madre retains the option to repay the loan and any accrued interest at any time without incurring penalties.
