First Majestic Announces Proposed Sale of the Del Toro Silver Mine for up to US$60M

Core Viewpoint - First Majestic Silver Corp. has entered into a definitive agreement to sell its 100%-owned Del Toro Silver Mine to Sierra Madre Gold & Silver Ltd. for total consideration of up to US$60 million, which includes US$30 million upfront and an additional US$30 million in delayed and contingent payments [1][2]. Transaction Details - The agreement stipulates that Sierra Madre will acquire all shares of First Majestic Del Toro, S.A. de C.V., which holds a 100% interest in Del Toro, in exchange for the specified cash and share consideration [2]. - All Sierra Madre Shares issued to First Majestic will be subject to a hold period of four months and one day from the date of issuance, along with additional resale restrictions [2]. Conditions for Transaction - The transaction is contingent upon Sierra Madre completing a concurrent private placement financing of at least CAD$40 million and obtaining various approvals, including acceptance by the TSXV and Mexican Antitrust approval [3]. - Sierra Madre plans to conduct an offering of up to CAD$50 million in subscription receipts, expected to be completed in January 2026 [3]. Shareholder Approval - Sierra Madre will seek shareholder approval for the transaction at a meeting anticipated by the end of April 2026, requiring a simple majority of votes cast, excluding votes from First Majestic and other specified persons [4]. Company Background - The Del Toro Silver Mine is a past producing operation that was placed under care and maintenance by First Majestic in January 2020 [5]. - First Majestic is a publicly traded mining company focused on silver and gold production in Mexico and the U.S., operating four producing underground mines and holding various development and exploration assets [6]. Additional Information - First Majestic operates its own minting facility, First Mint, LLC, offering a portion of its silver production for public sale [7].