On September 8, 2022, Sierra Madre Gold and Silver Ltd. closed the first tranche of a best efforts private placement pursuant to an agency agreement comprised of up to (i) 9,385,000 subscription receipts of Sierra Madre at a price of $0.65 per subscription receipt and (ii) 6,000,000 common shares of Sierra Madre at a price per $0.65 per common share for aggregate gross proceeds of approximately $10 million. The offering was co-led by Beacon Securities Limited and Canaccord Genuity Corp., on behalf of a syndicate of agents that included Haywood Securities Inc.
Sierra Madre granted the agents an option to sell up to an additional 2,307,750 subscription receipts at a price of $0.65 per subscription receipt for additional gross proceeds of up to $1.5 million exercisable in whole or in part at any time up to 48 hours prior to the applicable closing date of any tranche of the subscription receipt offering.
Under the first tranche, Sierra Madre issued 9,504,647 subscription receipts at a price of $0.65 per subscription receipt for aggregate gross proceeds of $6.2 million. Each subscription receipt, upon satisfaction of the escrow release conditions and without the payment of any additional consideration, automatically convert into one common share. The common share offering shall close in a second tranche, subject to the closing of the acquisition.
Cassels acted for the agents.