Silver Co. Uncovers Promising Assets in Prolific Mexican Mining District
Sierra Madre Gold and Silver Ltd. (SM:TSX.V; SMDRF:OTCQX) announced an 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). One analyst believes this stock is a Buy, as silver prices reach new heights.
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). The total consideration for the acquisition is up to US$60 million, which includes delayed and contingent milestone payments.
In conjunction with this deal, Sierra Madre also entered into an engagement letter with Beacon Securities Limited in connection with a private placement offering of up to US$50 million of subscription receipts.
Under the terms of the agreement, Sierra Madre will acquire 100% interest in the 2,129-hectare Del Toro Property in Zacatecas State. The property includes three fully permitted underground mines, a 3,000 tonne per day ("tpd") flotation processing circuit, and several historic mines.
Commenting on the 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 added, "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."
Key highlights of the Del Toro transaction include:
Del Toro is a fully permitted past-producing mine with on-site processing infrastructure that was operational from 2013 to 2019.
Historic measured and Indicated Mineral Resources total 7.57 million AgEq oz, grading 398 g/t AgEq, with Inferred Mineral Resources of 11.18 million AgEq oz, grading 293 g/t AgEq. Please see the company's December 17, 2025, press release for the disclosure of the Historic Resource Estimate.
The property hosts three underground mines with over 62.5 km of existing development.
Processing facilities include three mills with 3,000 tpd total capacity, flotation circuits, and a 12-year tailings storage facility based on 2,000 tpd throughput.
The mine is currently on care and maintenance with permits in place to resume operations.
Del Toro offers exploration potential in the historically productive Chalchihuites district, known for Ag, Pb, Zn, and Cu mineralization.
First Majestic will receive US$10 million in Sierra Madre shares at closing as part of the upfront consideration, solidifying its strategic position in the company.
Silver Price Outlook
The silver price has experienced significant appreciation in 2025, outpacing gains in gold. On December 17, Mining.com reported that silver surpassed US$66/oz for the first time, partially driven by expectations of further U.S. interest rate cuts following weaker labor market data. Marex analyst Edward Meir sees US$70/oz as the next near-term target for silver.
John Newell of John Newell & Associates recently published a silver price forecast of US$145/oz, noting, "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."
On December 16, Leede Financial Inc. published an update on the silver market, stating, "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." The firm cited factors such as strong ETF inflows, silver's status as a strategic metal in the U.S., positive industrial demand, and historical supply deficits as supportive of prices.
Technical analyst Ross Clark of Charts and Markets commented on December 16 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."
Commentary on Sierra Madre
In November, Dominic Frisby of The Flying Frisby suggested that Sierra Madre could benefit from a continued rise in the silver price, writing, "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."
In a November research note, VSA Capital analyst Oliver O'Donnell reiterated a Buy rating on Sierra Madre with a CA$1.75 price target, commenting, "Given increased grades, output and pricing, Q4/25 is expected to be stronger still."
On December 18, Ted Butler and Peter Krauth of The Silver Advisor wrote about the Del Toro acquisition, with Butler noting "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 elaborated, "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." He believes the transaction will enhance "Sierra Madre's already impressive value proposition" as the company pursues its mid-tier silver production goals.
Next Steps
Following the acquisition announcement, Sierra Madre is prioritizing the completion of the two-stage expansion underway at its La Guitarra mine. The company intends to begin the mine restart process at Del Toro in mid-2027, targeting initial production by mid-2028.
Streetwise Ownership Overview*
Sierra Madre Gold and Silver Ltd. (SM:TSX.V; SMDRF:OTCQX)
*Share Structureas of 12/19/2025Outlining the exploration strategy for Del Toro, COO Liller stated, "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 of Sierra Madre own approximately 21.4% of the outstanding shares. According to company filings, President and CEO Alexander Langer holds 2.68%, Executive Chairman and COO Gregory K. Liller owns 1.77%, and the remainder is held by other directors and officers (prior to the Del Toro acquisition).
Institutions own 34.3% of Sierra Madre, with Commodity Capital A.G. listed as the largest holder at 4.4%. Strategic investors account for 27.7% of ownership, with the remaining shares held by retail investors (prior to the Del Toro acquisition).
Sierra Madre Gold and Silver Ltd. has a current market capitalization of approximately CA$294.88 million. Over the past 52 weeks, the company's shares have traded in a range between CA$0.445 and CA$1.78.
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Important Disclosures:
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. 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.Katherine Del Buono wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 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.