Silver Miner Sierra Madre Secures Mine Acquisition in Mexico

portant Disclosures:

1. Sierra Madre Gold and Silver is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$3,000 and US$6,000. 
2. As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Sierra Madre Gold and Silver and First Majestic Silver Corp.
3. Katherine Del Buono wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
4.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

For additional disclosures, please click here.

1.  Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

On December 17, 2025, Sierra Madre Gold and Silver Ltd. (SM:TSX.V; SMDRF:OTCQX) announced that it had entered into a definitive agreement to acquire the Del Toro Silver Mine in the Chalchihuites District in Mexico from First Majestic Silver Corp. (AG:TSX; AG:NYSE; FMV:FSE). They acquired this mine for a total consideration of up to US$60 million, inclusive of delayed and contingent milestone payments. 

Aligned with this deal, Sierra Madre also entered into an engagement letter with Beacon Securities Limited. This was in connection with a best-efforts private placement offering of up to US$50 million of subscription receipts (the "Offering").

In accordance with this deal, Sierra Madre will obtain 100% interest in the Del Toro Property (2,129-hectares) in Zacatecas State that includes three, fully permitted underground mines, a 3,000 tonnes per day ("tpd") flotation processing circuit, and numerous historic mines.

In light of this news, CEO Alex Langer stated, "We are incredibly excited to be announcing our second mine acquisition in Mexico, which provides us with the opportunity to replicate the successful restart the Sierra Madre team has achieved at La Guitarra and advance the company towards mid-tier silver production levels. Near-term, our plan for Del Toro is to advance exploration and prepare an updated resource report while our operating team focuses on completing the two-stage expansion at La Guitarra. Our initial plan is to commence the mine restart process at Del Toro in mid-2027, with production currently slated for mid-2028. If silver prices continue on their current upward trajectory, there is a possibility of restarting Del Toro within a 12-month time period."

Executive Chairman and COO Greg Liller also commented on the transaction, saying, "Del Toro is an excellent match for our portfolio, not just on a production basis, but with considerable exploration upside. Part of our long-standing corporate business model is to acquire mines, such as La Guitarra, with existing production facilities, and then to build a resource base in under-explored, large historic mining districts."

Highlights of the transaction include:

• Del Toro is a fully permitted, past-producing underground silver-gold-lead mine with an on-site process plant that operated between 2013 and 2019.

• Historical Measured and Indicated Mineral Resources consisting of 592,000 tonnes grading 398 g/t AgEq (silver-equivalent) for 7.57 million AgEq oz (ounces) and historical Inferred Mineral Resources of 1.19 million tonnes grading 293 g/t AgEq for 11.18 million AgEq oz. See Historical Mineral Resource Estimate section in the company's December 17, 2025 press release for details, including tonnes and all metal grades.

• Three underground mines, with a total of over 62.5 km of development in place.

• The site includes a functional process circuit: three mills with a total capacity of 3,000 tpd, sulphide and oxide flotation circuits, as well as a new dry stack tailings storage facility with a 12-year capacity at 2,000 tpd operations.

• Full permits for resumption of underground mining operations are valid. Del Toro is currently under care and maintenance.

• Exploration upside: Del Toro is located within the under-explored Chalchihuites mining district, host to numerous old mines and workings with silver ("Ag"), lead ("Pb"), zinc ("Zn"), and copper ("Cu") mineralization. The San Martin, La Colorada, and Sabinas mines are all located near the Chalchihuites village.

• First Majestic will strengthen its strategic position in the company by receiving US$10 million worth of Sierra Madre shares at closing as part of the upfront consideration under the Transaction.

Could Silver Hit US$145?

Silver has been making waves this year in the resource sector, with some experts saying that it is outpacing gold. On Wednesday, December 17, 2025, Mining.com reported that silver had grown beyond US$66 an ounce for the first time. The article stated that this was due, in part, to optimism of another U.S. interest rate cut after weakness in the labor market. 

"'Silver is pulling gold up with it,' said Marex analyst Edward Meir, who sees US$70 as the next short-term target for silver," as quoted in Mining.com

John Newell of John Newell & Associates also shared his thoughts on Silver in a recent Streetwise Reports contributor opinion, giving silver a projected target of US$145 an ounce, and saying, "If silver repeats the magnitude of its previous two bull market runs, as projected in the third chart below, the upside could be even more shocking."

Leede Financial Inc. also shared optimism regarding the metal, writing in a December 16, 2025, update, "Silver prices continue to shine The rise in silver prices in recent weeks has been remarkable with prices topping US$64/oz, up ~120% YTD (versus gold +64% YTD) and with silver prices having doubled since the start of summer this year. Similarly, the gold:silver ratio has fallen sharply, trading below 70:1 at [the] time of writing. Reasons for the sudden silver price rise are varied, including: increasing investment demand as witnessed in strong ETF inflows, silver listed as a critical metal in the US, which has heightened tariff uncertainty and caused dislocation in physical inventories, positive industrial demand outlook (for solar, AI, and EV applications) as profiled by recent Silver Institute releases lag effect from years of physical deficits in silver that have reduced above-ground inventories, or Santa rally in the runup to the holiday season."

Ross Clark of Charts and Markets also seemed to share a similar sentiment, writing on the same day that, "The silver miners outperformed bullion from Q1 through Q3, as seen in Q4 1979. They appear poised to break through the October highs, but not run as hard as bullion."

Will Sierra Madre Soar?

As for Sierra Madre, Dominic Frisby of The Flying Frisby wrote in November that "If silver does the US$100 thing, then Sierra Madre Gold and Silver Ltd., which is expanding at just the right time, should soar, even from these lofty levels. [There is] lots of news flow to expect over the next year, including expansionary drilling (blue sky) and lower production costs, which we should see by early next year."

Oliver O'Donnell at VSA Capital is also keen on the stock, writing in a November research note that "Given increased grades, output and pricing, Q4/25 is expected to be stronger still." O'Donnell gave Sierra Madre a Buy rating and a CA$1.75 target price, which the company is very close to at the time of writing this article. 

On December 18, 2025, Ted Butler, along with Peter Krauth, of The Silver Advisor, wrote about the company in light of the above transaction, stating, "Sierra Madre already has a winning horse in its flagship La Guitarra project, but today it's adding a new stallion to the stable."

Butler continued, "Del Toro isn't just past-producing. It's also shovel-ready, with three fully-permitted underground mines, a 3,000 tonne per day flotation processing circuit, and numerous historic mines to boot. Incidentally, some of that history is quite recent, with an on-site process plant operating from 2013 to 2019. On top of that, the historical M&I resource at Del Toro is sizable to say the least. Indeed, we're talking 592,000 tonnes grading 398 g/t AgEq for 7.57 Moz AgEq and historical Inferred Mineral Resources of 1.19 million tonnes grading 293 g/t AgEq for 11.18 Moz AgEq. If those numbers don't make sense to you, just know that this is a big deal — the nature of which we're about to get into next, as we break down the financial consequences of the agreement." He went on to say that he thinks this is a deal that will enhance "Sierra Madre's already impressive value proposition."

Butler added, "As a result, shareholders should view Sierra Madre as a fast-growing producer, closing in on its mid-tier silver production aspirations, thanks to astute deal-making with world-class silver majors . . . we think the long-term benefits from the Del Toro acquisition will materially offset short-term dilution effects. And with cash flows from La Guitarra anchoring Sierra Madre's finances, Peter and I are happy to maintain our full weighting."

Catalysts

As stated in the news release, Sierra Madre is focused on finishing the two-stage expansion at La Guitarra. They aim to begin the mine restart process at Del Toro in mid-2027, with production currently slated for mid-2028.

In the release, Liller added additional color, stating, "Our initial exploration plans for Del Toro would include a drill program of approximately 50,000 metres, which would lead up to an updated Mineral Resource Estimate in early 2028 ahead of the possible mine restart. High priority targets include manto and chimney-type Carbonate Replacement Deposits ("CRD"), skarn mineralization like the nearby La Colorada mine operated by Pan American Silver, along with the vein-type deposits exploited by First Majestic."

Ownership and Share Structure¹

Management and founders own approximately 21.4% of the company. According to LSEG, President and CEO Alexander Langer owns 2.68% of the company, Executive Chairman and COO Gregory K. Liller owns 1.77%, Director Jorge Ramiro Monroy owns 1.32%, Director Alejandro Caraveo owns 1.26%, Director Kerry Melbourne Spong owns 0.57%, and Director Gregory F. Smith owns 0.14% (prior to the Del Toro acquisition).

Institutional investors own 34.3% of the company. Commodity Capital A.G. owns 4.4%, Refinitiv reported. Strategic investors hold 27.7%; the rest is retail (prior to the Del Toro acquisition).

Sierra Madre Gold and Silver Ltd. has a market capitalization of approximately CA$293.88 million and a 52‑week trading range of CA$0.445 to CA$1.78.