Silver mine: Cofece approves sale of First Majestic to Sierra Madre

Mexico‘s Federal Economic Competition Commission (Cofece) approved the sale of First Majestic‘s La Guitarra silver mine to Sierra Madre Gold & Silver Ltd.

On January 24, 2023, Sierra Madre, First Majestic Silver Corp. (FMSC), Corporacion First Majestic (CFM) and Guitarra Compañia Minera notified Cofece of their intention to enter into a concentration.

In consideration for the sale, First Majestic received 69,063,076 shares of Sierra Madre at an estimated price of 0.65 Canadian dollars per share, for an approximate value of 44.9 million Canadian dollars or 35.0 million U.S. dollars.

Silver mine

Following the closing of the transaction on March 29, First Majestic owns approximately 48.4% of the issued and outstanding common shares of Sierra Madre.

Prior to the closing of the transaction, First Majestic did not own any shares of Sierra Madre.

First Majestic acquired the shares of Sierra Madre common stock for general investment purposes.

Depending on various factors, including, without limitation, market conditions, general economic and industry conditions and/or any other factors First Majestic may deem relevant, First Majestic may take such actions with respect to its investment in Sierra Madre as it deems appropriate, including, without limitation, the acquisition, sale or distribution of the common stock to First Majestic’s stockholders or otherwise disposing of Sierra Madre securities from time to time.

First Majestic has been granted participation rights to maintain its proportionate interest in Sierra Madre (up to a maximum of 19.9%) in any future issuance of Sierra Madre shares, subject to customary exceptions.

The common shares held by First Majestic are subject to the following contractual resale restrictions, in addition to the resale restrictions provided by securities legislation and the custody policies of the TSX Venture Exchange.


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