Sierra Madre Gold and Silver (SM.V) has provided an update on its proposed acquisition of the La Guitarra silver mine from First Majestic Silver (AG, FR.TO). All relevant shareholder approvals have been received (with 99.99% of Sierra Madre’s shareholders that casted a vote approving the transaction. The TSX Venture Exchange has also (conditionally) approved the transaction, but the main hold-up is the requirement to gain Mexican antitrust approval before completing the transaction and resuming trading.
As Sierra Madre is a small outfit with no producing mines, there isn’t a single reason why the antitrust approval should not be forthcoming and as far as we are concerned, this is just a bureaucracy-related delay. We hope to see an update soon, so Sierra Madre can start to work on the fully permitted mine and mill and restart production within the next few years.
Disclosure: The author has a long position in Sierra Madre Gold and Silver. Sierra Madre is a sponsor of the website. Please read our disclaimer.
