First Majestic Silver (NYSE: AG) (TSX: AG) has completed the sale of its Del Toro silver mine to Sierra Madre Gold and Silver (TSXV: SM), closing a transaction valued at up to US$60 million.
The deal, struck under a share purchase agreement dated December 17, 2025, saw Sierra Madre acquire the asset via a mix of cash and shares. First Majestic received US$20 million in cash at closing along with 10,870,000 Sierra Madre shares priced at $1.30 each.
A further US$10 million is due within 18 months, payable in cash or shares at Sierra Madre’s choosing, while two contingent payments round out the headline figure. Sierra Madre owes another US$10 million if it reports mineral resources of at least 100 million ounces silver equivalent within 48 months, and a final US$10 million if the mine reaches commercial production of 4,000 tonnes per day for 30 straight days inside five years.
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The share component leaves First Majestic with 62.4 million Sierra Madre shares, or roughly 24.77% of the company on a non-diluted basis. That is a slight step down from the 26.18% it held going into the deal, which is a reflection of the new stock Sierra Madre issued through a concurrent financing. The shares carry a four-month hold and a staggered release schedule running into 2028.
Del Toro is a past producing silver, gold and lead operation that First Majestic placed on care and maintenance in early 2020. For a company now focused on four producing mines in Mexico and the restart of its Jerritt Canyon gold operation, the sale clears a dormant asset off the books while keeping First Majestic exposed to its upside through the equity stake.
Sierra Madre, which bought the La Guitarra mine from First Majestic in 2023, plans roughly 30,000 metres of resource expansion drilling at Del Toro ahead of a potential restart.
First Majestic Silver last traded at $25.12 on the TSX.
