SM Energy(US:SM) Newsfile·2025-07-24 19:08Core Viewpoint - Sierra Madre Gold and Silver Ltd. has successfully closed the first tranche of its brokered private placement offering, raising gross proceeds of $17,750,600 from the issuance of 25,358,000 units at a price of $0.70 per unit, part of a larger offering of up to 27,858,000 units for total proceeds of up to $19,500,600 [1][3]. Group 1: Offering Details - The first tranche consists of 25,358,000 units, each unit comprising one common share and one half of a common share purchase warrant, with each warrant allowing the purchase of one common share at $0.85 for 12 months [2]. - The company intends to use the net proceeds from the offering to expand the Guitarra mine's capacity, conduct exploration programs, and for working capital [3]. - Certain directors and officers subscribed for 686,000 units, totaling $480,200, which is classified as a related party transaction under Multilateral Instrument 61-101 [4]. Group 2: Agent Compensation - The company paid the agents a cash fee of $1,171,933 and issued 1,674,190 compensation options, each allowing the purchase of one common share at the issue price for 12 months [5]. - Additionally, a corporate financing fee of $26,500 was paid to the agents, along with 38,010 corporate finance fee compensation options [5]. Group 3: Regulatory Compliance - The units were offered to Canadian residents (excluding Quebec) and in the United States under available exemptions from registration requirements, with no hold period for Canadian subscribers [6]. - The offering remains subject to final acceptance by the TSX Venture Exchange [6]. Group 4: Company Overview - Sierra Madre Gold and Silver Ltd. focuses on the Guitarra mine in Mexico and the Tepic property, with the Guitarra mine being a permitted underground mine that restarted commercial production in January 2025 [9]. - The Tepic Project hosts low-sulphidation epithermal gold and silver mineralization with an existing historic resource [10].