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First Majestic Silver Corp. has entered into a definitive agreement to sell its 100% owned, past-producing La Guitarra Silver Mine in Mexico to Sierra Madre Gold & Silver for US$35 million.<\/p>\n\n\n\n
As part of the deal, Sierra Madre must raise a minimum of CDN$10 million in a private placement concurrent with or prior to closing of the transaction.<\/p>\n\n\n\n
Upon closing, First Majestic will be granted a 2% net smelter return royalty (NSR) on all mineral production from the La Guitarra concessions, with the NSR subject to a 1% buy-back option for US$2 million. <\/p>\n\n\n\n
First Majestic will also hold approximately 47% of the outstanding shares in Sierra Madre, which will be subject to a statutory holding period of four months and one day following the date of closing and contractual resale restrictions. <\/p>\n\n\n\n
Closing of the deal is expected to occur in the second half of 2022.<\/p>\n\n\n\n
La Guitarra is a past producing silver and gold operation that was placed under care and maintenance by First Majestic in August 2018. It consists of two underground operation centers and a flotation mill with a capacity of 500 t\/d.<\/p>\n\n\n\n