SIERRA MADRE ANNOUNCES AMENDMENTS TO THE OPTION AGREEMENT WITH RIVERSIDE RESOURCES ON THE PEÑOLES PROJECT IN DURANGO, MEXICO
March 01, 2013, Vancouver, BC – Sierra Madre Developments Inc. (TSX-V: SMG) (“Sierra Madre” or the “Company”) is pleased to provide an update regarding additional proposed amendments to the Option Agreement between the Company and Riverside Resources Inc. (“Riverside”) (TSX-V: RRI) on the Peñoles Project in Durango State, Mexico.
Under the revised terms of the Option Agreement, to earn a 51% interest in the Peñoles Project the Company will be required to issue 8,000,000 shares of Sierra Madre at a deemed price of $0.05 on or before March 30, 2013, incur $465,000 in exploration expenditures before June 30, 2013, incur an additional $750,000 in exploration expenditures by December 31, 2013, make a $100,000 cash payment to Riverside on December 31, 2013, make a $1,250,000 cash payment to Riverside on December 31, 2013 and make a final payment of $1,500,000 to Riverside on December 31, 2013 (payable in cash or shares at the Company’s election – the share payment would be based on the 20 day VWAP and subject to TSXV approval). The issuance of the 8,000,000 shares, the $465,000 in expenditures and the $100,000 payment due by December 31, 2013 are firm obligations. The amended Option Agreement is subject to TSX Venture Exchange approval.
The Company is currently finalizing a drilling contract with Procesadora de Minerales de Durango and expects to commence systematic drill testing below the historic silver mines at Peñoles by mid March.
ON BEHALF OF THE BOARD
“Carl von Einsiedel”
CEO and Director
For additional information contact: 604-685-3357
Certain statements in this press release may be considered forward-looking information. These statements can be identified by the use of forward looking terminology (e.g., “expect”,” estimates”, “intends”, “anticipates”, “believes”, “plans”). Such information involves known and unknown risks, including the availability of funds, the results of financing and exploration activities, the interpretation of exploration results and other geological data, or unanticipated costs and expenses and other risks identified by Sierra Madre in its public securities filings that may cause actual events to differ materially from current expectations. Specifically, there is no assurance the Company will be able to raise the funds necessary to earn an interest in the Penoles project on terms satisfactory to the Company, or at all. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
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 release.