Sierra Madre Gold & Silver (SM.V) has confirmed it signed a binding offtake agreement with MRI Trading in Switzerland, which will purchase all of the concentrate that will be produced at the flagship La Guitarra mine. According to Sierra Madre, the company received extensive interest in its silver-gold concentrate but it eventually picked MRI, not in the least because MRI was the offtake partner of the La Guitarra mine when it was last in production, and is thus familiar with the quality and details of the concentrate.
The offtake agreement will run for an initial period of 24 months, which coincides with the recently signed US$5M loan deal with First Majestic (FR.TO, AG).
Sierra Madre is ticking all the boxes that are required to reopen the La Guitarra silver-gold mine. And with silver trading firmly above US$30/oz and gold now trading above US$2400/oz, the timing couldn’t be better.
Disclosure: The author has a long position in Sierra Madre. Sierra Madre is a sponsor of the website. Please read the disclaimer.
