Sierra Madre Developments Inc.
TSX VENTURE : SMG

Sierra Madre Developments Inc.

February 15, 2012 15:38 ET

Sierra Madre Arranges $2.5 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 15, 2012) - Sierra Madre Developments Inc. (the "Company") (TSX VENTURE:SMG) wishes to announce it intends to undertake a private placement to raise up to $2,250,000, through the distribution of up to 30,000,000 units ("Units") at $0.075 per Unit.

Each Unit will consist of one common share and one-half of one common share purchase warrant; and each whole warrant will entitle the holder to acquire one additional common share of the Company at $0.10 for 12 months following the date of closing the private placement.

The Company has engaged the services of Burgeonvest Bick Securities Limited ("BBSL") to assist in the distribution of the Units, on a commercially reasonable, non-brokered basis. BBSL will be entitled to receive a 10% cash commission and 10% warrants (each warrant exercisable to acquire one Unit at $0.075 for 12 months from the date of closing) for Units sold by BBSL.

The private placement is subject to BBSL's satisfactory due diligence investigations, and the approval of the TSX Venture Exchange.

Net proceeds from the offering will be used by the Company primarily toward the acquisition and exploration of the Penoles property, Durango State, Mexico. (For details concerning the Penoles property, see the Company's recent news releases and MD&A filed on SEDAR).

The Company also intends to undertake a separate private placement to raise up to $500,000, through the distribution of up to 5,000,000 units at $0.10 per unit on a flow-through basis. Each flow-through unit will consist of one flow-through common share and one-half of one common share purchase warrant; and each whole warrant will entitle the holder to acquire one non-flow-through common share of the Company at $0.10 for 12 months following the date of closing the private placement. The net proceeds from this distribution will be used to undertake work on the Company's Harrison Gold property in British Columbia.

ON BEHALF OF THE BOARD

Carl von Einsiedel, CEO and Director

FORWARDLOOKING STATEMENTS DISCLAIMER: Certain statements in this press release may be considered forwardlooking information. There is no assurance that (i) the private placement as outlined above will close on the terms as stated, or at all; (ii) BBSL will be satisfied with its due diligence review of the Company; (iii) any Units will be sold; or (iv) the Company will be able to exercise its option to acquire the Penoles property.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Sierra Madre Developments Inc.
    604-685-3357