FR:CC - First Majestic Silver to sell Mexican mine in $35M deal

First Majestic Silver (NYSE:AG) said Wednesday it agreed to sell its past-producing La Guitarra silver mine in Mexico to Sierra Madre Gold & Silver (OTCPK:SMDRF) for $35M in shares. As a condition to closing the sale, Sierra Madre must raise at least C$10M in a private placement. Upon closing, First Majestic (AG) also will be granted a 2% net smelter return royalty on all mineral production from the La Guitarra concessions. La Guitarra is a past producing silver and gold operation that was placed under care and maintenance by First Majestic (AG) in August 2018. First Majestic Silver (AG) recently tumbled to a 52-week low after reporting a surprise Q1 adjusted loss.

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First Majestic Silver to sell Mexican mine in $35M deal