The Company will continue to be classified as a Tier 2 Mining Issuer on the
Escrow Restrictions
Under the terms of the Share Purchase Agreement, and as further described in the Circular, the Company acquired all of the issued and outstanding shares of
As described in the Circular, First Majestic may distribute all Consideration Shares in excess of a 19.9% ownership position of Sierra Madre (on a non-diluted basis) pro-rata to First Majestic's shareholders (the 'Excess Shares'). Following the closing of the Acquisition, First Majestic has retained a participation right to maintain its pro-rata interest in the Company (to a maximum of 19.9%) in any future share issues of the Company, subject to customary exceptions. The Consideration Shares held by First Majestic are subject to the following contractual resale restrictions, in addition to applicable securities laws resale restrictions and TSXV policies:
Concurrent Financing
On
Pursuant to the Agency Agreement, the Private Placement is compromised of (i) subscription receipts of the Company (the 'Subscription Receipts') at a price of
Under the First Tranche, the Company issued 9,504,647 Subscription Receipts at a price of
Trading Halt
The Common Shares continue to be halted from trading, and the Common Shares are expected to resume trading following the closing of the Common Share Offering, or as otherwise determined by the TSXV.
About Sierra Madre
The +2,600 ha
Sierra Madre's management has played key roles for managing exploration and development of more than 22Moz gold and 600Moz silver in combined reserves and resources. Sierra Madre's team of professionals has collectively raised over
Contact:
Email: investor@sierramadregoldandsilver.com
Cautionary Note
This press release contains 'forward-looking information' and 'forward-looking statements' within the meaning of applicable securities legislation. The forward-looking statements herein are made as of the date of this press release only, and the Company does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law. Often, but not always, forward-looking statements can be identified by the use of words such as 'plans', 'expects', 'is expected', 'budgets', 'scheduled', 'estimates', 'forecasts', 'predicts', 'projects', 'intends', 'targets', 'aims', 'anticipates' or 'believes' or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions 'may', 'could', 'should', 'would', 'might' or 'will' be taken, occur or be achieved. Forward-looking information in this press release includes, but is not limited to, the Company's expectations regarding the resumption of trading of the Common Shares on the TSXV and the closing of the Common Share Offering and the Private Placement.
In making the forward-looking statements included in this news release, the Company has applied several material assumptions, including that the Company will be able to receive all required regulatory approvals for the resumption of trading of the Common Shares on the TSXV by the timelines currently anticipated (or at all) and that the Company will be able to complete the Private Placement on the terms of the Agency Agreement. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of the Company to control or predict, that may cause the Company's actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein, including, but not limited to, the risk that the Company is not able to complete Private Placement on the terms set out in the Agency Agreement (or at all) and the risk that the Company is unable to obtain requisite regulatory approvals for the resumption of trading of the Common Shares on the TSXV as currently anticipated.
Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.
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