Sierra Madre Raises $39.7 Million in First Tranche to Fund Del Toro Mine Acquisition

Sierra Madre Gold & Silver Ltd. ( (TSE:SM) ) has shared an announcement.

Sierra Madre Gold & Silver Ltd. has closed the first tranche of its brokered private placement, raising approximately $39.7 million through the issuance of over 30.5 million subscription receipts at $1.30 each, as part of a larger $50 million offering led by Beacon Securities and a syndicate of investment dealers. The bulk of the proceeds have been placed in escrow and will be released upon completion of regulatory and shareholder approvals tied to the company’s planned acquisition of the Del Toro Silver Mine from First Majestic Silver, with funds earmarked to finalize the transaction, advance exploration and development at Del Toro, and support working capital, underscoring Sierra Madre’s effort to accelerate its growth in Mexican silver mining while navigating standard regulatory, escrow and related-party requirements.

The most recent analyst rating on (TSE:SM) stock is a Hold with a C$2.00 price target. To see the full list of analyst forecasts on Sierra Madre Gold & Silver Ltd. stock, see the TSE:SM Stock Forecast page.

Spark’s Take on TSE:SM Stock

According to Spark, TipRanks’ AI Analyst, TSE:SM is a Neutral.

The score is driven primarily by improving financial performance (return to profitability and manageable leverage), supported by strong technical trend/momentum. These positives are tempered by weak cash conversion (negative free cash flow) and a very high P/E that makes valuation a notable risk, despite favorable corporate developments around expansion and exploration.

To see Spark’s full report on TSE:SM stock, click here.

More about Sierra Madre Gold & Silver Ltd.

Sierra Madre Gold & Silver Ltd. is a Vancouver-based precious metals company focused on the acquisition, exploration and development of silver and gold assets, with a key growth strategy centered on expanding its portfolio of producing and past-producing mines in Mexico, including the proposed acquisition of the Del Toro Silver Mine in the Chalchihuites District.

Average Trading Volume: 574,764

Technical Sentiment Signal: Buy

Current Market Cap: C$294.9M

For detailed information about SM stock, go to TipRanks’ Stock Analysis page.